Quick overview

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Gold futures settled at $3,411 an ounce, up 1,1 percent from the close of $3,374 on Monday. Gold reached its highest point ever on April 22 at $3,486 per ounce

 

The yellow metal is at a two-week high amid monetary uncertainty in the world’s largest economy

Fed Governor Lisa Cook was fired by President Trump after she was accused of mortgage fraud by members of his administration.

The Fed’s interest rate management has been publicly criticized by President Trump, who has threatened to fire Fed Chair Jerome Powell. A legal battle is likely to follow Cook’s firing because she has maintained that the president lacks justification for doing so.

The independence of the central bank is called into question by the president’s attempts to influence it. Political control limits the Fed’s ability to make tough decisions, such as raising interest rates to curb inflation. In comparison to cash and other interest-bearing assets, gold may become more appealing if the president’s goal of lower interest rates is achieved.

Many analysts are bullish on the bullion asset, which has been in the news recently. Goldman Sachs Research forecast in May that by the end of 2025, the price of gold would have risen to $3,700 per troy ounce. Based on the opening price of $2,633 for gold on January 2, that would represent a 40 percent increase for the year. Growing central bank demand, combined with uncertainty over shifting U.S. policies and tariff measures driving this increase.