1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Spot gold closed at $3,383.66 per ounce on Tuesday (August 26), marking a daily gain of 0.53%. The price reached a session high of $3,385, approaching the key resistance level of $3,390. The immediate catalyst for this rally was President Trump’s unprecedented intervention into the Federal Reserve’s political independence.
Policy Black Swan Event Ignites Safe-Haven Demand
At 8 p.m. Eastern Time on August 25, Trump posted a dismissal letter targeting Federal Reserve Governor Lisa Cook on his Truth Social platform, accusing her of making false statements on mortgage applications in 2021. This move sparked constitutional controversy and strong protests from Democrats. Senator Elizabeth Warren, the ranking Democrat on the Senate Banking Committee, called the action a “blatant violation of the Federal Reserve Act,” while Minority Leader Chuck Schumer warned it would “destroy the Fed’s independence.”
Metals market reacted swiftly: within an hour of the announcement, spot gold surged by $34, from $3,351 to $3,385. Throughout the day, gold prices remained volatile at elevated levels, ultimately closing at $3,383.66 and recording the largest single-day gain in nearly three weeks.
Analysts pointed out that if Trump succeeds in dismissing Cook and receives support from the Supreme Court, he will gain consecutive nomination opportunities, allowing him to appoint up to four of the seven Fed governors and effectively take control of the world’s most important monetary policy institution. Jamie Cox, Managing Partner at Harris Financial Group, stated, “The President is reshaping the Federal Reserve Board in unconventional ways, essentially usurping the Fed’s forward guidance function.”
Chinese Demand Provides Structural Support
Data from the Hong Kong Census and Statistics Department on the 26th showed that net gold imports to mainland China via Hong Kong increased by 126.8% month-on-month to 43.9 metric tons in July, reflecting sustained recovery in demand from the world’s largest gold consumer. Giovanni Staunovo, Commodity Analyst at UBS, noted, “Shanghai gold prices traded above London prices for most of July, indicating strong physical demand. Chinese investors continue to diversify their allocations through gold.”
Technical Levels and Fund Flows
From a technical perspective, gold has broken through the $3,350-$3,360 resistance range, with the next key target at the psychological barrier of $3,400. Global gold demand, including over-the-counter trading, rose 3% year-on-year to 1,248.8 metric tons in the second quarter of 2025, with investment demand surging 78%, indicating continued inflows of safe-haven funds.
Outlook
In the short term, the crisis surrounding the Fed’s independence and political uncertainty will continue to support gold prices. However, two risk factors warrant attention: first, the possibility of federal courts overturning the dismissal decision, and second, the potential for broader policy uncertainty if the Trump administration moves forward with large-scale investments in private enterprises. Technically, the focus remains on whether gold can break through $3,400, while fundamentally, the market will monitor the Fed’s response to political interference at its September policy meeting.
As of the close on August 26, open interest in COMEX gold futures increased by 5.2%, indicating continued positioning in gold bulls. Against the backdrop of political risks and challenges to monetary policy independence, gold’s value as a non-political safe-haven asset is being repriced by the market.
