Gold and silver prices gained in the domestic futures market on Tuesday, August 26, after the dollar slipped following US President Donald Trump’s dismissal of Federal Reserve Governor Lisa Cook over mortgage-related allegations.
Gold and Silver Rates Today
- MCX Gold (October 3 contract): ₹1,00,897 per 10 grams, up 0.27%
- MCX Silver (September 5 contract): ₹1,16,314 per kg, up 0.31% (as of 9:10 AM)
The dollar index fell more than 0.30% after Cook’s removal, providing support to bullion prices.
Why Lisa Cook Was Dismissed
Lisa Cook, the first African-American woman on the Fed’s Board of Governors, was accused by William Pulte, Director of the US Federal Housing Finance Agency (appointed by Trump), of falsely claiming two mortgages as primary residences. The US Department of Justice has launched an investigation.
Analysts say Cook’s replacement could be a Trump ally with dovish monetary views, possibly increasing pressure for interest rate cuts.
Fed Policy Outlook
Markets are closely tracking signals from the US Federal Reserve. Chair Jerome Powell, speaking at the Jackson Hole symposium on August 22, hinted at a potential rate cut in September.
According to Reuters, the CME FedWatch Tool shows an 83% probability of a 25 bps rate cut at the Fed’s September 17 policy meeting — a scenario generally supportive for gold prices.
Key Data Ahead
Traders now await key macroeconomic data:
- US Q2 GDP preliminary estimates (Thursday)
- US PCE inflation data (Friday)
- India’s Q1 GDP print (Friday)
These releases are expected to influence both the dollar’s movement and expectations around Fed policy, which could drive further volatility in gold and silver prices.
Source: Mint / Reuters
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