Gold surged to a record high of $4,610.83 per ounce on Monday, gaining about 2.2 percent as investors rushed to safe-haven assets amid a combination of geopolitical tensions and concerns over the independence of the US Federal Reserve.
Following the intraday peak, gold was trading at approximately $4,608.20 per ounce, marking an annual gain of roughly 71.5 percent, one of the steepest 12-month increases in decades.
Silver prices also soared, climbing 6.8 percent to $85.50 per ounce, reaching historic highs. Over the past year, silver has surged about 181 percent, reflecting strong investor demand as both a hedge against uncertainty and a critical industrial metal used in electronics, solar panels, and other manufacturing sectors. Analysts say the sharp rise in precious metals signals widespread market anxiety and growing risk aversion among investors.
Several factors contributed to the surge. On the geopolitical front, unrest and instability in countries such as Venezuela and Iran heightened fears of energy and supply disruptions, prompting investors to shift funds into gold and silver. At the same time, concerns over the U.S. central bank’s independence intensified market volatility. Federal Reserve Chair Jerome Powell revealed that federal prosecutors are investigating his congressional testimony as well as a $2.5 billion renovation of the Fed’s Washington headquarters.
Powell noted that the probe stems from former President Donald Trump’s dissatisfaction with the Fed’s approach to interest rate policy, particularly its refusal to cut rates as quickly or aggressively as Trump had demanded.
The combination of these geopolitical and policy-related shocks caused the US dollar to weaken, while global equities and other riskier assets saw a retreat. Historically, gold and silver have performed strongly during periods of uncertainty, serving as a hedge against currency devaluation, inflation, and political instability. Traders are increasingly viewing precious metals as insurance against both short-term shocks and longer-term economic risks.
Market analysts caution that while the metals rally shows strong investor demand, volatility is likely to continue as investigations, policy decisions, and geopolitical developments unfold. Some expect gold to test even higher levels if global tensions persist, while silver could see continued gains given its industrial demand.