Gold and silver hit record highs on Monday as Federal Reserve Chair Jerome Powell expressed concerns about threats and pressure from the Trump administration affecting the central bank’s independence. Gold futures surged 2% to surpass $4,600 per troy ounce, while silver climbed above $84 per ounce following Powell’s remarks in a video released on Sunday. The weakening US dollar and equities also contributed to the rise in prices of precious metals like platinum and palladium.
Analysts pointed out that the current demand for precious metals is not solely driven by hedging against inflation or currency weakness. The escalating geopolitical tensions, such as the capture of Venezuelan leader Nicolás Maduro and threats of territorial acquisitions by the US, have prompted investors to seek safe haven assets like gold and silver. Rania Gule, a senior market analyst, highlighted how gold and silver are now seen as protection against global disorder and shifts in power dynamics.
Foreign central banks have been increasing their gold reserves in recent years, surpassing US Treasurys holdings for the first time since 1996. Meanwhile, silver has outperformed gold due to factors like China’s restrictions on exports and the metal’s industrial uses in the AI and reshoring sectors. However, analysts cautioned about the risks of a sharp correction as silver reaches new highs.
Despite the ongoing uncertainties in the global economy, gold and silver have started 2026 with strong gains, building on their impressive performance in the previous year. Investors are closely monitoring the market dynamics and geopolitical developments that could impact the prices of precious metals. As the demand for safe haven assets continues to rise, the outlook for gold and silver remains positive.
Ines Ferre, a senior business reporter for Yahoo Finance, emphasized the importance of staying informed about the latest stock market news and events influencing stock prices. For in-depth analysis and updates on financial and business news, readers can visit Yahoo Finance’s platform.
