Gold and silver are surging in dramatic fashion today, fueled by a powerful mix of political uncertainty, central-bank demand, and technical momentum. Gold is currently up $94, or 2.09%, at $4,603, while silver has jumped $5.15, or 6.44%, to $85.04. Both metals are on pace for record closes, reflecting an aggressive wave of safe-haven buying across global markets.
Fed uncertainty sparks a flight to hard assets
The immediate catalyst for the move was weekend news that the U.S. Justice Department is investigating Federal Reserve Chair Jerome Powell for possible criminal issues related to his June Senate testimony on the Fed’s building renovations. While the legal outcome remains unclear, the market reaction has been swift and decisive.
The bigger issue for investors is not the renovation itself—it is the implication that the independence of the Federal Reserve may be under threat. Markets are highly sensitive to any perception that monetary policy is becoming politicized, particularly at a time when interest-rate expectations are already volatile.
The Trump administration has been openly pushing for lower rates, but the President has not yet named a successor to Powell. That uncertainty has raised speculation that Powell may not leave quietly when his term as Fed Chair expires on May 15, 2026, and could instead remain on the Board of Governors until January 31, 2028. The possibility of a drawn-out standoff between the White House and the Fed adds another layer of instability, and gold and silver are reacting as they always do in moments of institutional stress—by attracting capital.
Central banks and geopolitics amplify the rally
This political shock is landing on top of powerful structural tailwinds that have already been driving precious metals higher.
Central banks—led by China, India, and Turkey—have been consistently accumulating gold since 2024 as part of a broader strategy to diversify away from the U.S. dollar. By 2026, gold has become the world’s second-largest reserve asset, a dramatic shift in the global monetary landscape.
At the same time, geopolitical risks remain elevated, from trade wars to regional conflicts including Iran. Gold functions as financial disaster insurance, and when uncertainty rises, demand follows. Silver, which blends safe-haven appeal with industrial demand, is benefiting from both sides of that equation.
Gold technical levels to watch
With gold trading at new all-time highs, the technical framework shifts toward identifying where buyers would be disappointed if momentum fades. A move back below the December high at $4,549 would signal a failure of the breakout and tilt the short-term bias lower.
On the upside, a Fibonacci extension of the October decline projects a target at $4,586.12, which marks the 161.8% extension level and serves as the next technical objective if the rally continues.
Silver technical levels to watch
Silver has been even more explosive, reaching a session high of $86.23. The key support zone sits between $82.69 and $83.75, defined by the late-December and early-January swing highs. As long as price holds above that area, buyers remain firmly in control.
On the topside, a Fibonacci extension of the last corrective pullback targets $87.49, which becomes the next upside objective if momentum stays intact.
With political risk rising, central banks accumulating, and price breaking into uncharted territory, gold and silver are being driven by both fear and conviction. For now, the trend remains firmly pointed higher, and until key support levels break, the path of least resistance stays to the upside.
