Tuesday, 26 August 2025
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Lisa Cook Removed, Gold Potential to Strengthen
Tuesday, 26 August 2025 08:22 WIB | MARKET ANALYSIS |

Gold prices have the potential to gain support this morning following news of US President Donald Trump's removal of Federal Reserve Governor Lisa Cook. This action raises uncertainty regarding the direction of the Fed's monetary policy, as Trump's move is seen as an attempt to expand his influence over the central bank. Political uncertainty and the risk of intervention in the Fed's independence typically drive investors to seek safe-haven assets, including gold, to cushion price declines or even drive gains in early trading.

Furthermore, market expectations for a Fed interest rate cut remain high following Fed Chairman Jerome Powell's dovish comments last week. With the combination of political uncertainty and the potential for a rate cut, the US dollar has the potential to weaken, supporting USD-denominated gold prices.

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