Gold hits two-week high on concerns over Fed independence

At 0:50 on August 27 (Vietnam time), spot gold price increased 0.5% to 3,382.19 USD/ounce, the highest level since August 11.

Gold jewelry is displayed for sale at a jewelry store in Beirut, Lebanon.

In the trading session on August 26, the demand for safe havens pushed the world gold price to its highest level in more than two weeks, as investor confidence in the US Federal Reserve (Fed) wavered after President Donald Trump's decision to remove a Fed governor.

At 0:50 a.m. on August 27 (Vietnam time), spot gold prices increased by 0.5% to $3,382.19/ounce, the highest level since August 11. Gold prices for December delivery also closed slightly up at $3,433/ounce.

US President Donald Trump has fired Federal Reserve Governor Lisa Cook over allegations of improper mortgage lending practices, an unprecedented move that, if challenged in court, could test the limits of the president’s power over the independent monetary policy-making body.

The news has given gold a little boost, said Bob Haberkorn, chief market strategist at trading firm RJO Futures. Trump’s firing of Fed Governor Lisa Cook has increased uncertainty and concerns about the Fed’s independence, encouraging investors to seek out gold as a safe haven.

Last week, Fed Chairman Jerome Powell signaled the possibility of a rate cut at its September meeting, while also saying risks to the job market were rising.

According to the CME FedWatch tool, markets are now pricing in more than an 87% chance that the Fed will cut rates by 0.25 percentage points by September 2025.

If Mr. Powell takes a dovish stance on interest rates at the next meeting and points to another cut this year, gold prices will continue to rise, Mr. Haberkorn added.

Gold, a non-yielding asset, tends to appreciate in a low interest rate environment.

Investors are now awaiting the US Gross Domestic Product (GDP) data due on August 28 and the Personal Consumption Expenditures (PCE) Index on August 29.

In this session, spot silver price increased slightly by 0.1% to 38.52 USD/ounce, while platinum price decreased by 0.1% to 1,340.88 USD/ounce.

In Vietnam, in the early morning of August 27, Saigon Jewelry Company listed the price of SJC gold bars at 126.10-127.70 million VND/tael (buy-sell).

vietnamplus.vn

Source: https://baolaocai.vn/gia-vang-cham-dinh-hai-tuan-truoc-lo-ngai-ve-tinh-doc-lap-cua-fed-post880586.html