Gold hits record highs on rate-cut bets and Fed independence fears

Global gold prices surged to fresh record highs this week, driven by mounting expectations that the U.S. Federal Reserve will cut interest rates and by investor concern over possible political interference in the central bank after President Donald Trump sought to remove Fed Governor Lisa Cook. Spot bullion traded in some market reports as high as about $3,550 an ounce on Tuesday, with other platforms showing readings nearer $3,500, while silver climbed above $40 an ounce for the first time since 2011.

Traders said a growing consensus that the Fed will lower short‑term rates this month reduced the opportunity cost of holding nonyielding assets such as gold, while legal and political uncertainty amplified safe-haven demand. The CME FedWatch tool showed markets pricing an overwhelmingly high probability of a 25 basis point cut in September. At the same time, data on inflation were mixed: the Core Personal Consumption Expenditures measure, the Fed’s preferred gauge, was reported higher in some releases, which analysts said has complicated the policy picture but did not derail bets for easing.

Political events intensified market nerves. A federal courtroom hearing in Cook v. Trump...