Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Gold Edges Down as the Dollar Strengthens as Concerns Over Trump's Move to Fire a Fed Governor Continue

BY MT Newswires | ECONOMIC | 08/27/25 09:07 AM EDT

09:07 AM EDT, 08/27/2025 (MT Newswires) -- Gold edged down early Wednesday as the dollar rose even amid concerns over U.S. President Donald Trump's move to take control of the Federal Reserve board, which continues to prompt safe-haven buying.

Gold for December delivery was last seen down US$4.00 to US$3,429.00, falling off the highest since August 8.

Trump on Monday said he is firing Federal Reserve Governor Lisa Cook as he continues to pressure the central bank to lower interest rates even as inflation continues to run hot. Cook was appointed to the Fed Board by Joe Biden and is the first African American woman to serve in the role. Trump is alleging Cook made misstatements in a mortgage application.

However Cook is disputing Trump's right to fire her and on Tuesday said she will sue the president, saying he lacks legal cause under U.S. law to take the step. Still, the president's attempt is raising concerns over the independence of the central bank, which sets U.S. monetary policy.

Gold's "support driven by concerns over the Fed's independence after Trump doubled down on his attempt to oust Lisa Cook. If successful, Trump would secure a majority on the Board of Governors, supporting his rate cutting agenda, despite ongoing concerns about sticky and currently rising inflation," Saxo Bank noted.

The president's move comes ahead of the Friday release of the July Personal Consumption Expenditures Index, the Fed's preferred inflation measure. The report is expected to show the index to be unchanged from June at a 2.6% annualized pace, according to the FactSet consensus estimate, sticking above the central bank's 2% target.

The dollar was higher early, with the ICE dollar index last seen up 0.4 points to 98.62. Treasury yields were also higher, with the U.S. two-year note last seen paying 3.66%, up 1.8 basis points, while the yield on the 10-year note was up 1.8 points to 4.286%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article