Gold Prices Surge 2.13% Amid Federal Reserve Turmoil and Trump’s Criticism
Gold prices climbed significantly on Friday, gaining 2.13% to reach $3,360 per ounce by 20:20 GMT, amid growing tensions between the White House and the U.S. Federal Reserve. The spike in precious metal prices reflects investor uncertainty following U.S. President Donald Trump’s escalating criticisms of the Fed and his controversial intervention in the Labor Department’s internal affairs.
The market upheaval comes in the wake of the Federal Reserve’s decision on Wednesday to hold interest rates steady. President Trump responded with scathing remarks directed at Fed Chair Jerome Powell, urging the central bank’s board to “assume control” of monetary policy decisions—comments seen by many as a further breach of central bank independence.
Adding to the turmoil, Federal Reserve Board member Adriana D. Kugler announced her resignation on Friday. Although no official reason has been provided, her departure coincides with a period of intense political pressure on the Fed and growing divisions within the board itself. Earlier in the day, two Fed officials issued public statements explaining their dissenting votes in favor of a rate cut, further highlighting internal discord.
Simultaneously, Trump announced that he had ordered the dismissal of a top expert overseeing the Bureau of Labor Statistics (BLS), accusing the department of manipulating data for political purposes. The move came after recent job reports showed a significant slowdown in employment growth, which the President labeled as “rigged.” Trump’s claims have drawn criticism from economists and policymakers who warn that undermining statistical agencies threatens the integrity of key economic indicators.
Amid these developments, gold—which traditionally serves as a safe-haven asset during times of political and economic uncertainty—saw renewed demand. The latest gains come after the metal had briefly retreated in recent weeks. In July, gold reached a record high of over $3,430 per ounce, underscoring continued volatility in global markets.
Silver also followed suit, rising by 0.7% to close at $37 per ounce.
The heightened political pressure on independent financial institutions and public data agencies spooked investors, leading to widespread sell-offs on Wall Street. U.S. stock markets ended the week with sharp losses, reflecting fears of institutional instability and declining confidence in the reliability of official economic data.
As political tensions escalate and economic uncertainties deepen, markets are likely to remain volatile, with precious metals continuing to act as a bellwether for investor sentiment.
