Gold prices rose on Tuesday, supported by increased demand for the precious metal amid shaken investor confidence in the US Federal Reserve following President Donald Trump’s dismissal of one of its members. By 14:18 GMT, spot gold prices climbed 0.2% to $3,372.05 per ounce, reaching their highest level since August 11 at $3,386.27 earlier in the session. December futures rose 0.1% to $3,420.40. Bob Haberkorn, senior market strategist at RJO Futures, said the overnight news of Trump’s dismissal of a Federal Reserve member on mortgage-related charges gave gold momentum as the central bank is currently the main driver of safe-haven demand. Trump took the unprecedented step of firing Fed member Lisa Cook over alleged mortgage violations, a move likely to test the limits of presidential authority over the Fed. Fed Chair Jerome Powell last week indicated a possible interest rate cut next month, noting increasing risks to the labor market.

According to CME Group’s FedWatch tool, markets currently see an 86% chance of a quarter-point rate cut in September. Haberkorn added that if Powell signals easing on rates at the next meeting and another cut later this year, gold is expected to continue rising. Gold, which yields no income, tends to rise in low interest rate environments and economic uncertainty. Other precious metals saw mixed movements: silver fell 0.2% to $38.49 per ounce, platinum rose 0.2% to $1,345.05, and palladium climbed 0.6% to $1,345.05 after hitting its lowest level since July 9 earlier in the session.