(RTTNews) – Extending the gains from last Friday, gold prices surged on Monday to scale record highs amid reports that the U.S. Department of Justice has opened up an investigation against Federal Reserve Chair Jerome Powell.
In addition, the geopolitical risks in Venezuela, the Russia-Ukraine war, and Iran civil unrest mounted pressure on investors to fly towards safe-haven yellow metal.
Front Month Comex Gold for January delivery zoomed by $114.00 (or 2.54%) to $4,604.30 per troy ounce.
Notably, gold prices, which have been up for three consecutive sessions, hit a new record high today.
Front Month Comex Silver for January delivery skyrocketed by $5.7260 (or 7.26%) to $84.610 per troy ounce. Silver prices also hit a new record high today.
In an unprecedented development, the U.S. Federal Reserve revealed that the U.S. Department of Justice had opened an investigation into Fed Chair Jerome Powell over alleged misdeeds in the $2.5 billion renovation of the Fed headquarters.
In response, Powell stated that the probe is a “consequence of the Fed’s interest-rate setting based on the assessment of the nation’s economy rather than the interests of the president.” Powell’s chairmanship concludes by May 2026.
U.S. President Donald Trump, who has been an explicit critic of Powell’s analysis of the economy and rate setting, went to the building site to inspect the work himself last year.
Experts interpret these events as intimidation to the current chair to nudge him to retire soon or face forcible ouster and also as a message to the next chair to think in line with the president’s expectations.
On Friday, Trump also proposed capping the interest rates for credit-cards at 10% for a year, starting January 20. Economists dismissed Trump’s plan as “non-enforceable” without legislation, but financial experts warned of far-reaching consequences for lenders if effected.
On January 3, U.S. forces stormed into Venezuela, captured its President Nicolas Maduro (and his wife), and airlifted them to the U.S., where they are now undergoing a trial on narco-terrorism charges.
On Sunday, Trump warned Cuba, neighbor and ally of Venezuela, to make a deal with the U.S. “before it is too late” though he did not elaborate what kind of deal he meant.
In the ongoing Russia-Ukraine war, Russia launched an aerial attack on Ukraine that triggered a fire in one of the city’s districts. The Ukrainian military made “direct hits” on the drilling platforms owned by Lukoil in the Caspian Sea – V Filanovsky, Yuri Korchagin, and Valery Grayfer.
The U.K. has committed to provide advanced weapons supporting Ukraine’s fight against Russian invasion.
In Iran, the uprising that began in Tehran in December 2025 against its Supreme Leader Seyyed Ali Hosseini Khamenei for failing to control inflation and letting the national currency to fall, is spreading to all major cities. The security agencies have cracked down on the mass protestors.
Trump had already warned the Iranian administration not to use violence against the demonstrators and if so, the U.S. would intervene.
Yesterday, Trump stated that Iranian leaders want to negotiate with the U.S. However, he added that “we may have to act before.”
In another stunning move, Trump announced that the U.S. will take over Greenland to block Russia and China attempting to take control of the Arctic island.
Analysts are concerned about a full-blown military conflict between the U.S. and China.
Being a major beneficiary of Venezuelan oil and having close ties with Iran, China stands to lose a lot by Trump’s recent moves.
These global tensions and the ongoing attack on the U.S. Fed, sent investors to pile up the yellow metal.
The U.S. dollar index was last seen trading at 98.89, down by 0.24 (or 0.24%) today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
