09:06 AM EDT, 08/26/2025 (MT Newswires) -- Gold futures rose early on Tuesday as the dollar fell and safe-haven buying rises after U.S. President Donald Trump said he is firing Federal Reserve Governor Lisa Cook as he continues to pressure the central bank to lower interest rates even as inflation continues to run hot.

Gold for December delivery was last seen up US$8.60 to US$3,426.10 per ounce, the highest since Aug.8.

The rise comes as investors move away from risk assets as Trump attempts to fire Cook, who was appointed to the Fed Board by Joe Biden and is the first African American woman to serve in the role. Trump is alleging Cook made misstatements in a mortgage application.

Cook, one of seven Fed governors and a member of the 12-person Federal Open Market Committee that sets U.S. interest-rate policy, denies the allegations and said Trump does not have the authority to fire her.

Trump's unprecedented move against the central bank's board comes as he continues to attempt to pressure them to lower interest rates, including mulling firing Fed Chair Jerome Powell, raising fears he will end the Fed's independence and disrupt global financial stability. Equities also weakened, with Asian and European stock markets lower and futures pointing to a lower open for U.S. exchanges.

"US President Trump moved to oust Fed Governor Lisa Cook over alleged mortgage document falsification, but she says he lacks authority to fire her, and she won't quit. The clash could open the door for Trump to secure a Fed board majority," Saxo Bank noted.

The dollar was lower following Trump's announcement. The ICE dollar index was last seen down 0.21 points to 98.22. Treasury yields were mixed, with the U.S. two-year note last seen paying 3.706%, down 2.8 basis points, while the yield on the 10-year note was up 0.7 points to 4.283%.