Spot Silver surged over 5% to a fresh record high of $83.49/oz. on Monday, as heightened geopolitical tensions and a criminal probe into Fed Chair Jerome Powell prompted investors to flock to safe-haven assets.
Unrest in Iran has led to the deaths of over 500 people, according to a report by Reuters, as Tehran threatened to target US military facilities in case President Donald Trump carries out his threats to strike the Islamic country on behalf of protesters.
Meanwhile, Federal Reserve Chair Jerome Powell said over the weekend he had been threatened by the Trump administration with a criminal charge over Congressional testimony. Powell said this was a “pretext” intended to mount more pressure on the US central bank to cut interest rates.
The probe into Powell is unprecedented and amplifies existing concerns over the political pressure facing the central bank. While tensions between the Trump administration and the Fed are not new, the latest developments arrive at a particularly delicate moment as the institution moves toward a leadership transition.
Powell’s term as Fed Chair is scheduled to conclude after May this year and he is expected to exit any remaining roles at the central bank afterward.
FOMC policy makers had signaled just one 25 bps rate cut for 2026, while investors continue to expect two or three rate cuts.
Spot Silver was last up 5.48% on the day to trade at $84.30 per troy ounce.
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