Gold, Silver Hit New Highs as Bitcoin Trades Flat Ahead of Key Macroeconomic Events
Gold and silver surged to record highs as investors sought safe-haven assets amid a political crisis at the Federal Reserve, triggered by a Department of Justice lawsuit against Fed Chair Jerome Powell. Silver outperformed with a nearly 7% jump to around $85, while gold rose 2.2% to a new high of $4,600. In contrast, Bitcoin remained flat. The rally was fueled by concerns over central bank independence, rising geopolitical risks, and market uncertainty around U.S. monetary policy. Market sentiment favors gold over cryptocurrencies, with rising conviction that gold will hit $5,000 before Ethereum. Additional drivers include renewed geopolitical tensions and weak labor data, which strengthen the case for interest rate cuts and boost non-yielding assets like gold and silver. This week’s U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data are expected to be pivotal, as softer readings could reinforce rate cut expectations and sustain the metals’ rally. The sustainability of record prices now hinges on upcoming inflation figures.
