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Gold, Silver Hit New Records as Fed Turmoil and Geopolitical Risks Drive Haven Buying

Investors cite a DOJ criminal probe of Fed Chair Jerome Powell as a threat to Federal Reserve independence that is accelerating demand for precious metals.

Overview

  • Gold traded near $4,620 per ounce according to SPDR Gold Shares and silver reached $84–$86, with silver up roughly 5%–7% on the day and about 190% over 12 months.
  • The Justice Department opened a criminal investigation tied to Federal Reserve renovation costs, and Powell says the case is being used to pressure for rate cuts sought by President Donald Trump.
  • Markets sold Treasuries as real yields fell and the dollar weakened, channeling flows into perceived safe havens such as gold and silver.
  • Weaker-than-expected U.S. employment data reinforced bets on multiple Fed rate cuts this year, though policy is expected to hold steady at the next meeting.
  • Central banks kept buying gold at elevated levels into late 2025 and silver gained additional support from industrial demand in renewable-energy technologies, while tensions from Iran to Eastern Europe and U.S.–China rivalry lifted risk aversion.