Fed Under DOJ Attack, Gold, Silver Break Records
Gold and silver hit new records on Monday amid a broader precious metals rally, after the Federal Reserve's independence came under scrutiny following the US Department of Justice's (DOJ) targeting of Fed Chairman Jerome Powell. This institutional uncertainty sent the market into risk-off mode, pressuring the dollar and reviving interest in safe-haven assets.
At the last update, spot gold (XAU/USD) was around US$4,610/oz, briefly reaching a daily peak of US$4,618/oz. Meanwhile, silver (XAG/USD) was around US$85.1/oz, with a daily range reaching US$85.54/oz.
This rally occurred after Powell implied political pressure on the central bank—as the DOJ proceeded with a process that fueled market concerns about the politicization of interest rate policy. In the bond market, the 10-year US Treasury yield edged up to around 4.20%, while the dollar weakened.
Julius Baer analyst Carsten Menke believes increased intervention by the Fed could be a key driver for precious metals throughout 2026—with the smaller silver market likely to react more "wildly" as interest rate and dollar concerns heat up.
Looking ahead, market participants are also monitoring two volatility drivers: the US Supreme Court's scheduled ruling on January 14, 2026 (including a case related to Trump's tariffs), and the outcome of the Section 232 investigation, which could potentially pave the way for US tariffs on silver, platinum, and palladium.
Source: Newsmaker.id
