Gold prices rose to a two-week high on Tuesday as the dollar weakened following the announcement of the dismissal of Lisa Cook, a member of the U.S. Federal Reserve Board. By 00:55 GMT, spot gold prices increased by 0.5% to $3,384.34 an ounce, the highest since August 11. December gold futures rose 0.4% to $3,432.40. The dollar index dropped 0.3% against a basket of currencies, making gold less attractive to foreign buyers. President Donald Trump took the unprecedented step of dismissing Lisa Cook, the first African American woman to serve on the Federal Reserve Board, amid allegations related to two mortgage violations. Federal Reserve Chair Jerome Powell indicated on Friday a possible interest rate cut at the central bank’s next 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 interest rates are cut as it lowers the opportunity cost of holding the non-yielding precious metal. Other precious metals also rose: silver spot prices increased 0.4% to $38.72 an ounce, platinum rose 0.7% to $1,352, and palladium gained 1% to $1,096.75.