Gold Remains Resilient as Fed Faces Tough Choices

President Trump announced he will likely appoint a temporary Federal Reserve governor within days to fill the soon-to-be-vacant seat left by Adriana Kugler, whose term ends in January. This move would buy time for the administration to continue evaluating long-term candidates—especially for the crucial Fed Chair position, currently held by Jerome Powell. Trump’s team is weighing several Wall Street insiders for the temporary role and continues to consider “the two Kevins”—Kevin Warsh and Kevin Hassett—as potential successors to Powell, whose term expires in May 2026.

With a vacancy opening on the Federal Reserve’s board, the Trump administration is weighing its options to influence the central bank’s direction. Fed Governor Adriana Kugler is stepping down early, and the White House is reportedly considering a temporary appointment to fill the five remaining months of her term. President Trump, who has long criticized the Fed for keeping rates steady, is pushing for interest rate cuts to stimulate the slowing U.S. economy. The decision on Kugler’s replacement — and potentially Fed Chair Jerome Powell’s successor in 2026 — could shape the Fed’s policy path in a time of economic

President Trump announced a sweeping 100% tariff on imported computer chips, aiming to pressure tech companies to shift manufacturing to the U.S. The tariff won’t apply to chips made domestically, which has helped boost confidence in firms like Apple and Nvidia that have already committed major investments in U.S. production. While the policy could support American manufacturing, it also risks raising prices on electronics, vehicles, and household goods—potentially fueling inflation and creating new supply chain challenges.

China’s central bank increased its gold reserves for the ninth month in a row in July, bringing holdings to nearly 74 million ounces—valued at almost $244 billion. This consistent buying trend by one of the world’s largest central banks underscores a long-term strategic shift toward gold. The move reinforces gold’s role as a safe-haven asset amid ongoing global economic uncertainty. Analysts continue to raise their gold price forecasts, with one Reuters poll predicting an average of $3,220 per ounce this year.

Gold climbed to its highest level in over two weeks as trade tensions and expectations of interest rate cuts boosted safe-haven demand. President Trump’s new tariffs took effect, sparking global trade friction, while U.S. jobless claims rose to a one-month high—fueling speculation that the Federal Reserve will cut rates soon. Analysts say that if economic data continues to weaken, gold could see even stronger support. With uncertainty rising and rate cuts likely, gold’s role as a safe-haven asset is once again in focus.