Gold prices surged this week, breaking the US$3,400 per ounce threshold once again, driven by a weakened US dollar and ongoing turmoil with the Federal Reserve. President Donald Trump has placed consistent pressure on Federal Reserve Chair Jerome Powell to reduce interest rates, and recent developments have added fuel to this fire. On August 25, Trump announced via his social media platform, Truth Social, that he was dismissing Lisa Cook from her role on the central bank’s board of governors amid allegations of mortgage fraud. Cook, who has previously voted to maintain steady interest rates, was set to serve until 2038 but has since initiated legal action to contest Trump’s order, labeling it “unlawful and void.”
This unfolding scenario has raised questions regarding the legality of Trump’s power to fire a Federal Reserve board member, as the Federal Reserve Act does not permit arbitrary removals. Instead, it allows for the removal of officials “for cause.” The Fed has stated that it will comply with any subsequent court rulings regarding Cook’s status, leaving market observers eager to see how the situation resolves. The dynamics of the gold market typically benefit from low interest rates, leading some analysts to suggest that a rate cut from the Fed could catalyze a further increase in gold prices. The upcoming Federal Reserve meeting is scheduled for September 16-17, and there’s significant speculation that a rate cut could be announced, despite the most recent data showing the PCE price index rose by 2.6 percent year-on-year in July, with core PCE increasing by 2.9 percent.
In addition to the shifting landscape for gold, the U.S. Department of the Interior has unveiled a new draft critical minerals list, which could profoundly impact various mining sectors. The draft includes proposed additions such as silver, potash, silicon, copper, rhenium, and lead. The inclusion of silver has garnered attention from the mining community, as it could lead to favorable conditions for silver-focused companies, such as tax incentives and expedited permitting processes. The list, containing a total of 54 minerals, will be open for public comment for 30 days following its announcement on August 26, but it is essential to note that the addition of these minerals is not yet finalized.
The re-evaluation of critical minerals also suggests potential removals, with arsenic and tellurium now under consideration for exclusion. Such lists vary globally, and recently, stakeholders in the silver industry in Canada have advocated for silver’s inclusion in their national critical minerals list but have seen no movement to date.
Meanwhile, developments in the uranium market are noteworthy as Sweden’s government has proposed lifting its ban on uranium mining, which has been in place since 2018, as part of a strategy to decrease reliance on imported energy resources. This shift will take effect on January 1, 2026, as countries increasingly turn to nuclear energy to meet their power demands. Despite a rising demand in the uranium market, production adjustments have been announced by various mining companies. For example, Kazatomprom has scaled back its 2026 production targets by approximately 8 million pounds, citing the need for caution despite a belief in stable long-term prices. Similarly, Cameco has indicated that its output will suffer delays due to transitions at its Saskatchewan-based McArthur River mine, projecting a reduction of 4 million to 5 million pounds in 2025.
As the situation continues to evolve, both the gold and uranium markets are under close scrutiny, and investors are advised to stay updated on these developments.
