Quick overview

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Gold and silver reached all-time highs as the US Justice Department threatened the Federal Reserve with a criminal indictment, while protests in Iran bolstered the demand for a haven, reigniting concerns about its independence.

 

Silver approached $85, and the yellow metal surged toward $4,600 per ounce, following Fed Chair Jerome Powell’s statement that the possible indictment “should be seen in the broader context of the administration’s threats and ongoing pressure” to influence the bank’s interest-rate decisions.

The Trump administration’s repeated attacks on the Fed last year were a significant factor that weakened the dollar and bolstered gold.

In the meantime, deadly protests in Iran have made precious metals more appealing as a haven if the Islamic Republic is overthrown.

Just over a week after seizing Venezuelan leader Nicolas Maduro, US President Donald Trump stated on Sunday that he was considering options regarding Iran while reiterating threats to seize Greenland and questioning the usefulness of the NATO alliance.

Precious metals are at the center of a strong upward re-rating due to a confluence of tailwinds that have increased demand.

Gold and silver have benefited from several factors, including declining US interest rates, increased geopolitical tensions, diminished confidence in the US dollar, and challenges to the Fed. Due to their belief in gold’s long-term appeal, more than a dozen money managers stated they have chosen not to remove too much money from the market.

“Geopolitics, the growth/rates debate, and now a new headline-driven reminder of an institutional risk premium are just a few of the many uncertainties markets are juggling.”