Gold and silver prices peaked post the US President Donald Trump’s administration’s criminal probe into US Fed Chair Jerome Powell.
Gold hit a record high of over $4,600 per ounce on Monday, while silver hit a fresh peak of $86.22 per ounce.
On Tuesday, Bullion traded near $4588 an ounce after surging 2% in the previous session. Meanwhile, silver declined 1.4% after rising over 6% on Monday.
The attack on the Fed revived the “sell America” trade, with the dollar dropping on Monday and Treasuries selling off across the curve.
Trump’s intervention has threatened to undermine the Fed’s ability to control inflation and weighed on markets, sparking the so-called debasement trade where traders sell the dollar and other assets vulnerable to political and fiscal shocks. His repeated attacks on the monetary authority were a major factor propelling gold to successive record highs last year.
The yellow metal has built on that momentum to start 2026 on a strong footing, and many traders are confident in the metal’s longer-term appeal. Citigroup Inc. upgraded its near-term outlook to see gold at $5,000 an ounce and silver at $100 an ounce in the next three months, given heightened geopolitical risks, physical shortages and renewed uncertainty about Fed independence.
Gold had increased over 64% last year, recording its best performance since 1979. Meanwhile, silver witnessed its strongest year on record, surging 146.8%.
With inputs from Bloomberg
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