Gold and silver have surged to record highs driven by a combination of market uncertainty and a U.S. Justice Department probe targeting the Federal Reserve. Investors are seeking safe haven assets as tensions rise over the central bank’s independence with gold reaching around $4,600 an ounce and silver approaching $85 an ounce historic peaks for both metals.
The investigation involves grand jury subpoenas related to Fed Chairman Jerome Powell with reports linking the probe to disputes over interest rate decisions and pressure from the Trump administration. Analysts say the legal scrutiny has shaken confidence in U.S. monetary policy weakened the dollar and fueled demand for traditional stores of value like precious metals.
Global uncertainty including geopolitical tensions and unrest in Iran has compounded the rally. Traders are moving capital into gold and silver while equity markets show volatility amid investor caution. Market experts warn that such pressures could keep precious metals elevated for the foreseeable future as investors seek protection against both political and economic risks.
The surge underscores how legal political and geopolitical pressures are driving a renewed flight to metals that historically hold value in times of instability reflecting a broader sense of risk aversion among global investors.
