Gold, Silver Hit Record On Inflation Data, Fed Criminal Probe
A wave of speculative interest concerns over US tariffs and renewed uncertainty about the Fed's independence are also seen as supporting silver.
Gold and silver hit records on Tuesday after a weaker-than-expected US inflation reading, while markets kept a close eye on the Trump administration’s renewed attacks on the independence of the Federal Reserve.
Bullion traded above $4,620 an ounce, while silver rose to more than $88, extending Monday’s rally. Treasury yields dipped on Tuesday after the latest US inflation data showed signs that price pressures are gradually abating, a boon for precious metals that do not pay interest.
Precious metals have rallied this week after the Trump administration escalated its attack on the Federal Reserve, with Chairman Jerome Powell saying the potential indictment was a continuation of attempts to pressure the central bank. The latest attack on the Fed revived the “sell America” trade, with the dollar dropping on Monday and Treasuries selling off across the curve.
“With Powell’s tenure as Fed Chair due to end in May, uncertainty of Fed independence and the trajectory of US interest rates will in our view remain a key gold market driver for much of 2026,” David Wilson, director of commodities strategy at BNP Paribas SA, wrote in a note.
Attacks on the Fed helped propel gold to successive record highs last year, along with heightened trade and geopolitical risks and central-bank buying. With Trump seizing Venezuela’s leader, threatening to take Greenland and renewing his campaign against Powell this year, precious metals are carrying that momentum through to 2026.
Silver has also just emerged from a record-setting year, with much of its gains occurring in the second half when a historic short squeeze gripped the global market and a speculative frenzy propelled it to successive highs in December. A wave of speculative interest concerns over US tariffs and renewed uncertainty about the Fed’s independence are also seen as supporting silver.
“A large share of the activity is being driven by speculative flows, particularly momentum-oriented traders who chase strength on the way up but are equally quick to cut exposure when prices turn,” Ole Hansen, a strategist at Saxo Bank A/S, wrote in a message.
Citigroup Inc. forecasts that gold will reach $5,000 an ounce and silver will get to $100 an ounce in the next three months.
“We expect the bull market to stay intact in the near term,” Citi analysts said in a note. “Our base case is for eventually moderating geopolitical risks to weigh on hedging demand for precious metals later in the year, particularly on gold.”
Meanwhile, CME Group will change the way it sets margins for gold, silver, platinum and palladium futures after the surge in prices and volatile trading. The new approach will be based on a percentage of so-called notional — compared with a dollar amount basis previously — and will take effect from Tuesday’s close.
The US exchange provider also announced the forthcoming launch of a new 100oz silver contract Wednesday, to facilitate greater participation from retail investors.
“Silver is increasingly appealing to retail traders looking to diversify their exposure across a wider range of metals in the face of geopolitical uncertainty and the energy transition,” Jin Hennig, global head of metals at CME Group said in a statement.
Spot gold rose to $4,623.64 an ounce as of 3:14 p.m. London time. The Bloomberg Dollar Spot Index was steady. Silver climbed 4.2%, while platinum and palladium also rose.
