Gold $GLD ( ▲ 1.87% ) and Silver $SLV ( ▲ 6.7% ) are doing what they do best when politics collides with monetary policy: ripping higher.
Both metals jumped to fresh records early Monday after Federal Reserve Chair Jay Powell explicitly accused the executive branch of using the justice system to pressure the Fed’s rate decisions, a development that investors are reading as a direct threat to central bank independence.
Gold touched $4,599 and silver traded as high as $84.60, extending what’s already been a monster run for precious metals.
When the Fed Chair Says “This Is Intimidation,” Markets Listen
Powell said the Fed had been served grand jury subpoenas by the U.S. Department of Justice, tied to his Senate Banking Committee testimony in June about renovations to the Fed’s buildings. Critics, including President Trump, have floated the idea of firing Powell “for cause” over alleged cost overruns.
Powell didn’t sugarcoat the implications.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said in a video message.
He framed it as a major institutional test: whether monetary policy remains guided by evidence and economic conditions, or becomes shaped by political pressure.
The Dollar Slips, Safe Havens Pop
This is the type of headline that tends to rattle confidence in a country’s policy stability. Historically, when investors think a central bank is being dragged under political control, markets usually respond with:
a weaker currency
higher borrowing costs
stronger demand for safe haven assets like gold and silver
That pattern showed up quickly. Since around 7 p.m. ET Sunday, the U.S. Dollar Index DXY has fallen about 0.4%, weakening versus major currencies like the euro, yen, and British pound.
Meanwhile, the iShares Silver Trust $SLV ( ▲ 6.7% ) and SPDR Gold Shares ETF $GLD ( ▲ 1.87% ) became two of the top trending tickers on r/wallstreetbets over the last 12 hours, adding gasoline to an already hot move.
Trump Wants 1% Rates, and the Succession Clock Is Ticking
Trump has repeatedly argued the Fed funds rate should be around 1% (or lower) this year, partly to reduce the government’s debt financing costs. He’s also expected to announce his pick to succeed Powell soon, which is keeping markets hyper-focused on any signal that the next chair could be more politically aligned.
Prediction markets did not meaningfully move the odds for Fed Governor Christopher Waller, who remains around 10%. Kevin Hassett (NEC director) and former Fed Governor Kevin Warsh are sitting near the top, both around 40% or higher.
Bottom line: gold and silver are not just rallying on inflation or rates anymore. They’re rallying on confidence, and markets just got a fresh reason to question who’s really in control of U.S. monetary policy.