{"id":119096,"date":"2025-08-26T16:29:21","date_gmt":"2025-08-26T13:29:21","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=119096"},"modified":"2025-08-26T16:29:22","modified_gmt":"2025-08-26T13:29:22","slug":"gold-outlook-president-trump-fires-governor-cook","status":"publish","type":"post","link":"https:\/\/www.ironfxcn.com\/pt\/gold-outlook-president-trump-fires-governor-cook\/","title":{"rendered":"Gold Outlook: President Trump fires Governor Cook"},"content":{"rendered":"

Gold\u2019s appears to have moved higher since our last report<\/a> and President Trump\u2019s firing of Governor Cook. Today\u2019s report is to discuss the recent comments made by Fed Chair Powell, the firing of Governor Cook, the US\u2019s inflation print and\u00a0 we are to conclude the report with a technical analysis of gold\u2019s daily chart.<\/p>\n\n\n\n

President Trump fires Governor Cook<\/strong><\/h2>\n\n\n\n

Tensions between the US Governmen<\/strong>t and the Federal Reserve continue to intensify. In particular, President Trump has fired Fed Governor Cook<\/strong> yesterday. Specifically, the letter states as follows \u201cpursuant to my authority under Article II of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately\u201d. <\/p>\n\n\n\n

The decision<\/strong> came after Governor Cook allegedly falsified mortgage applications and marks the first time that a Fed Governor has been fired in the bank\u2019s 111-year history<\/strong>. In response, Fed Governor Cook stated that \u201cPresident Trump purported to fire me \u2018for cause\u2019 when no cause exists under the law, and he has no authority to do so\u201d which may imply that a long legal battle could ensue, with the Fed\u2019s independence at stake. <\/p>\n\n\n\n

Regardless of whether the allegations are true or not, the White House\u2019s decision to in our opinion, pre-emptively remove the Governor, calls into question the independence of the Federal Reserve. In turn, this could provide support for gold\u2019s price, given its safe-haven asset status.<\/p>\n\n\n\n

The Fed\u2019s dovish pivot?<\/strong><\/h2>\n\n\n\n

Fed Chair Powell\u2019s speech at the Jackson Hole Symposium<\/strong> occurred on Friday, and through his comments, it appeared to showcase a pivot in the Fed\u2019s monetary policy approach. In particular, we are referring to the following statement that \u201cNonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance\u201d. <\/p>\n\n\n\n

Hence, the comments by the Fed Chair imply that the Fed may be considering cutting interest rates in the near future, which may have weighed on the dollar whilst aiding gold\u2019s price, given their assumed inverse relationship with one another.<\/p>\n\n\n\n

US Inflation data this week<\/strong><\/h2>\n\n\n\n

The Fed\u2019s favourite tool for measuring inflationary pressures<\/strong> in the US economy is set to be released this Friday. Specifically, the US PCE<\/strong> rates for July with the Core PCE rate expected to showcase an acceleration of inflationary pressures in the economy as it expected to come in at 2.9% which would be higher than the prior month\u2019s rate of 2.8%. <\/p>\n\n\n\n

Hence should the PCE rates showcase an uptick of inflationary pressures in the US economy it may increase pressure on the Fed to delay their possible dovish pivot which was implied in Fed Chair Powell\u2019s comments on Friday. In turn this may aid the dollar whilst weighing on gold\u2019s price. In our opinion, a small uptick in inflation may not necessarily \u2018prevent\u2019 the Fed from cutting rates in their next meeting<\/p>\n\n\n\n

Gold Technical Analysis<\/strong><\/h2>\n\n\n\n

XAU\/USD Daily Chart<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
\"Line<\/figure>\n\n\n\n