GOLD and silver achieved record highs as the US Justice Department’s threat to criminally indict the Federal Reserve sparked fresh alarm over central bank autonomy.
Gold approached $4,600 per ounce whilst silver breached $84 following Federal Reserve Chair Jerome Powell’s disclosure of “threats and ongoing pressure” from the administration to influence interest rate policy. The dollar weakened as 10-year Treasury yields advanced.
Persistent Trump administration criticism of the Fed has emerged as a significant driver for precious metals appreciation, said Bloomberg News on Monday. “We see increased interference with the Fed as a key bullish wildcard for the precious metals in 2026,” said Carsten Menke at Julius Baer Group.
Silver jumped as much as six percent on Monday, reaching just above $84.60 per ounce. The metal surged nearly 150% last year, partially reflecting a historic short squeeze. London’s dominant spot market remains tight as tariff concerns obstruct supply flows from American warehouses, though borrowing costs have moderated recently.
“We see the deficit in the silver market continuing throughout 2026, primarily on higher investment demand,” BMI stated Monday, noting industrial consumption has tightened physical markets unprecedentedly.
Chinese speculative activity has intensified the rally, with traders accumulating nickel, platinum and silver positions. The nation’s sole pure-play silver fund recently barred new investors, concerned about premium spikes over underlying asset values.
Geopolitical tensions, including deadly Iranian protests and Trump’s threats regarding Greenland and NATO, reinforced haven demand. Gold climbed as much as two percent to $4,599.87 per ounce.
Markets await Section 232 investigation results, potentially imposing US tariffs on silver, platinum and palladium this month.
“A move toward $5,000 soon seems highly plausible,” Bloomberg strategists noted.
