Gold closed at $3,416 per ounce on 28/8, up $20. This is the highest level since 23/7.

The market rose due to a weaker dollar and safe-haven demand as investors worried about the Federal Reserve's (Fed) independence. The dollar index fell 0.5%, making gold cheaper for buyers using other currencies.

Fed Governor Lisa Cook has filed a lawsuit against former US President Donald Trump, asserting he lacked the authority to remove her. This legal battle is expected to potentially reshape long-held norms regarding the Fed's independence.

Global gold prices surged on 28/8. Chart: Kitco

"Gold has been rising for over a week, partly due to concerns about the Fed. Pressure from Mr. Trump is fueling speculation that the agency may cut interest rates faster and keep them lower for longer. This is beneficial for gold prices," Tai Wong, an independent precious metals trader, told Reuters.

The CME FedWatch Tool indicates that investors are currently predicting an 87% probability of a Fed rate cut in September.

In the US stock market, the S&P 500 closed up 0.3% at 6,501 points, marking its second consecutive record high. The DJIA also rose 0.16% to an all-time high of 45,636 points. The Nasdaq Composite closed at 21,705 points, up 0.53%.

7 of the 11 sectors in the S&P 500 advanced, led by telecommunications services and energy.

Nvidia shares fell 0.8% due to US-China trade tensions, which led the chipmaker to exclude the Chinese market from its revenue forecast for this quarter. Despite this, the company's revenue surged 56% in the previous quarter, confirming the strong demand for AI-related technology. Consequently, shares of Alphabet, Amazon, and Broadcom rose 1-3%.

"The main driver of the market has been AI, and there are no signs of it cooling down," said Ross Mayfield, an investment strategist at Baird.

Data analytics company Snowflake's stock jumped 20% after projecting a surge in fiscal year 2026 revenue, driven by AI demand. Computer manufacturer HP's shares also climbed 4.6% after announcing an expected revenue increase, thanks to AI-integrated personal computers.

Nike's stock dipped 0.2% following the company's announcement of plans to cut nearly 1% of its workforce as it seeks to regain market share from competitors.

Investors are now awaiting the US personal consumption expenditures (PCE) report, due out today. Any indication of accelerating inflation could influence the Fed's rate adjustments next month.

Ha Thu (according to Reuters, Kitco)