Update: Gold Moves Higher as the Dollar Weakens as Concerns Over Trump's Move to Fire a Fed Governor Continue

02:00 PM EDT, 08/27/2025 (MT Newswires) -- (Updates prices.)

Gold moved higher midafternoon on Wednesday as the dollar gave up early gains 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 up $14.90 to US$3,447.90, 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 steady, with the ICE dollar index last unchanged at 98.22 after earlier trading at 98.73. Treasury yields were also moved lower, with the U.S. two-year note last seen paying 3.633%, down 0.9 basis points, while the yield on the 10-year note was down points to 4.246%.

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