Gold prices rose to their highest level in two weeks on Tuesday as the dollar declined following the announcement by US President Donald Trump of the dismissal of Lisa Cook, a member of the Federal Reserve Board. By 00:55 GMT, the spot gold price increased by 0.5% to $3384.34 per ounce, the highest since August 11. December futures rose 0.4% to $3432.40. The dollar index fell 0.3% against a basket of currencies, making gold less attractive to foreign buyers. Trump took the unprecedented step of dismissing Lisa Cook, the first African American woman to serve on the Fed Board, amid allegations related to two mortgage loans. Fed Chair Jerome Powell indicated on Friday the possibility of a rate cut at the next central bank meeting, citing rising risks to the labor market. The CME FedWatch tool shows an 83% chance of a quarter-point rate cut on September 17.

Gold tends to rise when rates are cut, as it reduces the opportunity cost of holding the non-yielding precious metal. Other precious metals also rose: silver gained 0.4% to $38.72 per ounce, platinum rose 0.7% to $1352, and palladium increased 1% to $1096.75.