Gold and Silver Prices Soar to Record Highs
Gold and silver prices have reached record highs, with bullion trading above $4,620 an ounce and silver rising to more than $88, following a weaker-than-expected US inflation reading. The latest US inflation data showed signs that price pressures are gradually abating, which is a boon for precious metals that do not pay interest.
Precious metals have rallied this week after the Trump administration escalated its attack on the Federal Reserve, with Chairman Jerome Powell saying the potential indictment was a continuation of attempts to pressure the central bank. The latest attack on the Fed revived the “sell America” trade, with the dollar dropping on Monday and Treasuries selling off across the curve.
Impact of Fed Independence on Gold Prices
According to David Wilson, director of commodities strategy at BNP Paribas SA, the uncertainty of Fed independence and the trajectory of US interest rates will remain a key gold market driver for much of 2026. Gold prices in India are also expected to be affected by these factors.
Attacks on the Fed helped propel gold to successive record highs last year, along with heightened trade and geopolitical risks and central-bank buying. With Trump seizing Venezuela’s leader, threatening to take Greenland and renewing his campaign against Powell this year, precious metals are carrying that momentum through to 2026.
Silver Prices Also Reach Record Highs
Silver has also emerged from a record-setting year, with much of its gains occurring in the second half when a historic short squeeze gripped the global market and a speculative frenzy propelled it to successive highs in December. A wave of speculative interest concerns over US tariffs and renewed uncertainty about the Fed’s independence are also seen as supporting silver.
According to Ole Hansen, a strategist at Saxo Bank A/S, a large share of the activity is being driven by speculative flows, particularly momentum-oriented traders who chase strength on the way up but are equally quick to cut exposure when prices turn. Silver prices today are expected to remain volatile due to these factors.
Citigroup Forecasts Further Price Increases
Citigroup Inc. forecasts that gold will reach $5,000 an ounce and silver will get to $100 an ounce in the next three months. The company expects the bull market to stay intact in the near term, but believes that eventually moderating geopolitical risks will weigh on hedging demand for precious metals later in the year, particularly on gold.
Meanwhile, CME Group will change the way it sets margins for gold, silver, platinum, and palladium futures after the surge in prices and volatile trading. The new approach will be based on a percentage of so-called notional — compared with a dollar amount basis previously — and will take effect from Tuesday’s close.
The US exchange provider also announced the forthcoming launch of a new 100oz silver contract Wednesday, to facilitate greater participation from retail investors. How to invest in silver is a question on the minds of many retail investors, and this new contract is expected to provide them with more opportunities.
Conclusion
In conclusion, gold and silver prices have reached record highs following a weaker-than-expected US inflation reading, amid renewed attacks on the Federal Reserve’s independence. The uncertainty of Fed independence and the trajectory of US interest rates will remain a key gold market driver for much of 2026. Gold and silver prices in India are expected to remain volatile due to these factors, and investors should stay informed about the latest developments in the market.
