Gold and silver futures climbed to new all-time highs on Monday, as investors reacted to a mix of geopolitical flashpoints and growing concerns around the US Federal Reserve and its leadership. Safe-haven demand strengthened after Federal Reserve chair Jerome Powell said the Department of Justice had served subpoenas on the central bank and warned of a possible criminal indictment. The action relates to his June testimony on the Fed’s $2.5-billion renovation of two office buildings, a project that has been sharply criticised by President Donald Trump as excessive. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) for February delivery surged Rs 2,431, or 1.8%, to a record Rs 1,41,250 per 10 grams.The metal has added Rs 3,058 over the past week, reflecting a rise of 2.25%. Silver prices recorded an even stronger move. March futures jumped Rs 11,271, or 4.46%, to hit a lifetime high of Rs 2,63,996 per kilogram on the MCX. Over the last week, silver has gained Rs 16,409, translating into a 6.94% increase. International bullion markets mirrored the rally. On the Comex, gold futures for February delivery advanced $111.8, or 2.5%, to reach a fresh peak of $4,612.7 per ounce.Silver futures for March delivery rose $4.56, or 5.8%, touching a historic high of $83.90 per ounce. Market experts said the surge was driven by heightened unease over the Federal Reserve after US federal prosecutors launched a criminal investigation into Powell concerning the renovation of the Fed’s Washington headquarters. The development comes amid escalating tensions between the White House and the central bank, which Trump has repeatedly criticised for failing to cut interest rates as sharply as he prefers. Analysts said the probe has amplified fears about the Fed’s independence, raising doubts over the direction and stability of US monetary policy and prompting investors to move into safe-haven assets such as gold and silver. The rally was further supported by weakness in the US currency. The dollar index, which tracks the greenback against a basket of six major currencies, was trading lower at 99.03. Geopolitical risks also weighed on sentiment. Analysts pointed to comments that President Trump is considering military action against Iran following violent anti-government protests, saying Tehran had crossed a “red line”. At the same time, the United Nations has called an emergency meeting after allegations that Russia deployed a new ballistic missile during a large-scale strike on Ukraine. Together, these factors have deepened uncertainty across global markets, pressured the dollar and reinforced investor demand for safe-haven assets.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
