Spot Silver extended gains on Tuesday, while holding near a record high of $86.16/oz., as concerns over the Federal Reserve’s independence and geopolitical tensions prompted investors to flock to safe-haven assets.
Federal Reserve Chair Jerome Powell said over the weekend the US Department of Justice had issued subpoenas to the central bank. Prosecutors also threatened criminal charges related to Powell’s testimony in June last year on a Fed building renovation project.
Powell said this was a “pretext” intended to mount more pressure on the US central bank to cut interest rates. 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.
Meanwhile, unrest in Iran has led to the deaths of hundreds of people, raising fears of potential US intervention. Iran’s foreign minister said security forces have regained control after two weeks of unrest. However, he blamed the US and Israel for fueling the protests.
Additionally, US President Trump has warned that any country doing business with Iran would face a 25% tariff on all US transactions.
Market focus now sets on the key US CPI inflation report, due later today, which may provide further clues over the Fed’s monetary easing path.
Spot Silver was last up 0.55% on the day to trade at $85.64 per troy ounce.
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