SRINAGAR: Gold prices in the national capital rose by Rs 300 to Rs 1,01,570 per 10 grams, as investors sought refuge in safe-haven assets amid escalating concerns over the independence of the US Federal Reserve. The move follows US President Donald Trump’s threat to dismiss Federal Reserve Governor Lisa Cook, raising fears of political interference in the central bank, according to multiple media reports.
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According to traders, a weakening US dollar, expectations of an interest rate cut by the Federal Reserve, and uncertainty over US trade policies also contributed to the upward momentum in gold prices.
In the previous session, gold of 99.9 percent purity had settled at Rs 1,01,270 per 10 grams. In the local market, gold of 99.5 percent purity rose by Rs 200 to Rs 1,01,000 per 10 grams (inclusive of all taxes), up from Rs 1,00,800 per 10 grams on Wednesday.
Silver prices remained unchanged at their all-time high of Rs 1,20,000 per kilogram (inclusive of all taxes).
“Gold prices gained on Thursday, supported by a pullback in the US dollar and ongoing demand for safe-haven assets. Market participants are discussing the legality of President Trump’s ability to terminate Lisa Cook,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, as per NDTV report.
The dispute intensified after Cook’s lawyer announced plans to sue the Trump administration to block the dismissal, raising constitutional questions about executive authority over the central bank. The Federal Reserve has kept interest rates unchanged since late 2024, citing persistent inflation risks, particularly due to President Trump’s unpredictable tariff measures.
“This legal battle could set a precedent regarding the limits of the White House’s influence over the US central bank. Such uncertainty is driving investor demand for gold,” Gandhi added.
Globally, spot gold rose by USD 8.09, or 0.24 percent, to USD 3,405.55 per ounce in New York. Spot silver was trading 1 percent higher at USD 38.97 per ounce.
“Gold prices are holding firm above USD 3,390 per ounce, with traders awaiting key US macroeconomic data, including Q2 GDP and weekly jobless claims, for further insight into the economic outlook and monetary policy direction,” said Kaynat Chainwala, AVP Commodity Research at Kotak securities.