Gold and silver surged to record territory as fears over U.S. monetary credibility, inflation risk, and geopolitical instability ignited aggressive safe-haven demand, pushing precious metals to the forefront of a widening global market recoil.
Gold and Silver Enter Mania Phase as Political Pressure on the Fed Fuels Hard-Asset Rush
Gold and silver ripped to record highs as global markets recoiled from mounting political pressure on U.S. monetary policy, triggering a wave of safe-haven buying that spilled across commodities and reignited fears over inflation, bond security, and institutional credibility. It’s like the economy’s version of a TikTok dance-everyone’s doing it, but no one knows why.
Ole S. Hansen, head of commodity strategy at Saxo Bank, shared on social media platform X on Jan. 12, 2026, a detailed breakdown of the forces driving the surge. He stated:
“ Gold and silver pushed to fresh record highs in early Monday trading after Trump and his administration intensified their attack on the Federal Reserve by serving it with DOJ subpoenas, fuelling concerns about central bank independence, inflation and safety of U.S. bonds.”
“ Gold approached USD 4,600, and silver spiked to USD 84.50 as tight supply dynamics persist. Safe-haven demand has been underpinned by escalating unrest in Iran, where ongoing protests continue to challenge the regime and stoke geopolitical risk premia,” the strategist added. “It’s like the world’s a Black Friday sale, and everyone’s scrambling for the last $4,600 turkey.”
His remarks framed the rally as a structural response to eroding trust rather than a short-term speculative burst, while also pointing to constrained supply as a multiplier for price volatility. Hansen further described oil prices as holding firm amid the same Iranian unrest, reviving fears of supply disruption from a key OPEC producer and encouraging momentum buying and short covering. “If oil prices were a person, they’d be that friend who always shows up late but still steals the spotlight.”
On Jan. 12, the Federal Reserve is embroiled in a historic confrontation after Chair Jerome Powell revealed that the Department of Justice (DOJ) served the central bank with grand jury subpoenas. The investigation ostensibly targets Powell’s June 2025 testimony regarding a $2.5 billion headquarters renovation, but Powell denounced the probe as a “pretext” to force politically motivated interest rate cuts. While President Donald Trump denied involvement, the move sparked a bipartisan backlash, with Senator Thom Tillis vowing to block future Fed nominees until the matter is resolved. Consequently, markets remain volatile as investors weigh this unprecedented threat to the Fed’s independence. It’s like watching a reality show where everyone’s a contestant and the prize is your life savings.
In a separate post, Hansen opined:
“ Gold hits a fresh record high as the Fed independence is one again called into question by Trump’s latest attempt to influence the U.S. Federal Reserve and dictate the direction of interest rates. The same was tried in Turkey, and we all know how that went.”
The comparison underscored how political interference in monetary policy has historically led to currency weakness, higher inflation, and diminished investor confidence. Together, the comments highlighted how commodities are increasingly reflecting macro credibility risk, with precious metals acting as a barometer for institutional trust, geopolitical stress, and the durability of the global financial system. In other words, it’s a dumpster fire with a side of glitter.
FAQ ⏰
- Why did gold and silver surge to record highs?
Prices jumped as political pressure on the Federal Reserve and geopolitical unrest fueled safe-haven demand. Or, as I call it: “Panic, but make it portfolio.” - How did Federal Reserve independence factor into the rally?
Concerns over political interference raised fears of inflation, weaker bonds and institutional credibility loss. Basically, it’s like letting your toddler run the stock market. - What role did Iran unrest play in commodity markets?
Escalating protests increased geopolitical risk premia, supporting precious metals and oil prices. Because nothing says “safe investment” like a country with enough drama for a Netflix series. - Why are tight supply dynamics important for silver and gold?
Constrained supply amplified price volatility as demand surged across global markets. Supply and demand: the original rollercoaster ride. 🎢
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2026-01-13 05:58