In Monday’s trading session, gold hit a record high of $4,625.99 per ounce. At the same time, silver rallied to a new all-time high of $85.79 amid the rising debate on the Federal Reserve’s independence following the initiation of a criminal investigation linked to Federal Reserve renovations by the U.S. Department of Justice (DOJ). Amid the uncertainties, the U.S. Dollar Index (DXY) weakened, slipping below 99.
Gold and silver closed the previous trading session at $4,566.84 and $83.23, respectively. Spot gold was trading at $4,597.07 per ounce at last check. Prices of gold and silver are driven by safe-haven perception amidst heightened tension between the Fed and the Trump-led Administration. Federal Reserve Chair Jerome Powell said on Friday that the Department of Justice had served the Federal Reserve with grand jury subpoenas, warning of a possible criminal indictment linked to his testimony before the Senate Banking Committee last June, which partly addressed a multi-year renovation of historic Federal Reserve office buildings.
“It is not about Congress’s oversight role; the Fed, through testimony and other public disclosure, has made every effort to keep Congress informed about the renovation project. Those are pretexts. 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.” Jerome Powell said in an official statement.
Powell added that the situation raised questions about whether the Federal Reserve would be able to continue setting monetary policy based on evidence and economic data, or whether policy decisions would be influenced by political pressure or intimidation. However, President Trump denied any involvement in the investigation.
In addition to discussions around the Fed’s independence, gold was supported by safe-haven demand amid heightened geopolitical tensions involving Iran and renewed focus on Greenland. Moreover, silver prices are also driven by industrial demand. Investors are eyeing U.S. CPI and earnings data scheduled for release later today.
Investors’ Eyes December U.S. CPI Data
The U.S. Bureau of Labor Statistics (BLS) is scheduled to release the December 2025 Consumer Price Index (CPI) and real earnings data at 8:30 a.m. ET today. The data release is crucial as it is likely to shape the interest rate cuts. The U.S. headline inflation is expected to hold steady at 2.7%, similar to November data, while core inflation is anticipated to increase from the previous 2.6% to 2.7%. Stronger-than-expected inflation data could pressure gold and silver while supporting the dollar and bond yields. If the inflation remains elevated, there will be less room for Fed rate cuts. Nevertheless, CME FedWatch data shows markets assigning a 95% probability that the Federal Reserve will maintain its benchmark rate in the 350–375 basis-point range, with only a small chance of a rate cut in the upcoming Fed meeting on January 26, 2026.
