Gold, Silver Hit Records Amid Powell Investigation

Gold and silver climbed to record levels on Jan. 12 as investors sought refuge amid rising geopolitical and economic tensions. The surge comes in the wake of a criminal investigation by the Trump administration into Federal Reserve Chair Jerome Powell, escalating concerns over US monetary policy and driving demand for safe-haven metals.

Gold prices rose about 2% to reach a record high of US$4,600/oz on Jan. 12 morning, while silver also hit a new peak. Spot gold increased 1.9% to US$4,596.05/oz at 09:31 GMT, after earlier touching an all-time high of US$4,600.33. US gold futures for February delivery rose 2.3%, reaching US$4,606.20.

“With the Fed’s independence openly questioned, the political risk premium usually applied to emerging markets is now affecting the US dollar, pushing investors toward hard assets,” said Zain Vawda, Analyst, MarketPulse by OANDA. 

The administration threatened to charge Powell over his congressional testimony last summer, which he described as a pretext to increase political influence over interest rates. Major investment banks, including Goldman Sachs and Morgan Stanley, anticipate two rate cuts of 25 basis points each in June and September.

Trump also mentioned he is considering strong responses, including military options, to the violent repression of protests in Iran. Non-interest-bearing assets such as gold tend to perform well in environments of low interest rates and geopolitical or economic uncertainty. Spot silver rose 5.5% to US$84.32/oz, after reaching an early session record of US$84.60. Spot platinum gained 4.6% to US$2,376.75/oz, following a previous record of US$2,478.50 on Dec. 29, while palladium increased 3.3% to US$1,875.50/oz.

Geopolitical Events That Have Shaped Metals Prices 

Last week, gold prices surged more than 2% reaching a one‑week high as geopolitical turmoil following the US capture of Venezuelan President Nicolás Maduro prompted investors to seek safe‑haven assets. 

Earlier in 2025, President Trump’s escalating actions against Venezuela also influenced market dynamics: his administration targeted a third oil tanker to intensify a blockade aimed at cutting off critical revenue streams for the Venezuelan government, a move that lifted oil prices and reinforced a risk‑off environment that further strengthened demand for safe‑haven assets.

Gold and silver responded strongly to these geopolitical tensions, while copper also recorded significant gains, rising nearly 40% over the year, driven by both robust industrial demand and sensitivity to political developments in resource-rich regions.

Geopolitical instability extended beyond Latin America. The assassination of a senior Russian general in Moscow, reportedly linked to Ukraine, underscored persistent tensions in Eastern Europe. At the same time, US special envoy Steve Witkoff described diplomatic meetings with Ukrainian and European counterparts as “productive and constructive,” highlighting ongoing negotiation efforts alongside strategic posturing.

Economic policy developments added further complexity. Comments from top advisers, including Kevin Hassett, emphasized optimism around the US economy, tariff enforcement, and potential one-time rebate checks. However, controversies such as the handling of documents linked to Jeffrey Epstein maintained an undercurrent of political and legal uncertainty affecting market sentiment. Despite these pressures, global stock markets showed resilience, with investors balancing geopolitical risks against expectations for year-end economic performance.