Gold, silver surge as 'assault on Fed' sparks rush to valuable metals

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Gold (GC=F) and silver (SI=F) surged to all-time intraday highs on Monday after Fed Chair Jerome Powell warned that “threats and ongoing strain” from the Trump administration are jeopardizing the central financial institution’s independence.

Gold futures climbed 2% to rise above $4,600 per troy ounce, whereas silver rose above $84 per ounce following Powell’s video launched on Sunday, by which he mentioned a subpoena from the Division of Justice over his testimony about headquarters renovations comes amid a “broader context of the administration’s threats and ongoing strain.”

Learn extra: Find out how to put money into gold in 4 steps

A transfer decrease within the US greenback (DX-Y.NYB) and equities additionally helped raise gold, silver, platinum (PL=F), and palladium (PA=F), amongst different metals.

“If you happen to’re questioning why persons are shopping for valuable metals at all-time highs, the assault on the Fed is a reminder,” Robin Brooks, a senior fellow within the world economic system and growth program on the Brookings Establishment, mentioned on X on Monday morning.

“That is a deeply destabilizing occasion that is feeding protected haven demand,” he added.

Treasured metals are coming off every week of value features after the USA captured Venezuelan chief Nicolás Maduro, made threats to take Greenland by means of negotiation or “the arduous manner,” and escalated tensions with Iran.

“Gold is not shifting solely as a hedge in opposition to inflation or greenback weak spot, however more and more as safety in opposition to geopolitical dysfunction and the reshaping of world energy dynamics,” Rania Gule, senior market analyst at XS.com, mentioned on Monday.

Gold and silver entered 2026 with features, constructing on their historic rally final yr.

International central banks have been buying gold at a report clip in recent times, just lately breaching a brand new threshold by holding extra bullion than US Treasurys for the primary time since 1996.

Learn extra: Find out how to defend your cash throughout financial turmoil, inventory market volatility

In the meantime, silver outperformed gold final yr and into 2026. China restricted silver exports at the beginning of this yr, and analysts have pointed to a deficit, given the metallic’s industrial makes use of amid a man-made intelligence and reshoring increase.

“However care have to be taken if chasing costs increased because the dangers of a pointy correction solely improve as silver makes contemporary highs,” mentioned David Morrison, senior market analyst at Commerce Nation.