Silver prices surged to a new record high on Tuesday, while gold prices steadied near historic levels, as investors rushed toward safe-haven assets amid growing concerns over the independence of the U.S. Federal Reserve.
Silver climbed to about $88 per ounce by 9:15 a.m. EST on January 13, up 3.4%, breaking the previous record of just over $86 set a day earlier. The metal has become one of the strongest-performing assets in global markets.
Gold traded around $4,624 per ounce, slightly below its all-time high of $4,630 reached on Monday. Both metals posted sharp gains earlier this week.
Analysts linked the surge to investor anxiety following news that the U.S. Justice Department is probing Federal Reserve Chair Jerome Powell. Powell confirmed he received subpoenas related to the renovation of the Fed’s headquarters and his testimony to Congress.
Market experts said the investigation has shaken confidence in the Fed’s independence. Julius Baer strategist Carsten Menke said political interference is a “bullish wildcard” for precious metals, noting that silver’s smaller market size makes it more volatile.
Zain Vawda of MarketPulse said the probe is pushing investors toward hard assets, as the central bank’s autonomy is now being openly questioned.
The volatility prompted CME Group to change margin requirements for precious metals, shifting from fixed dollar margins to a percentage-based system. The exchange said the move was part of a routine review to ensure adequate collateral during periods of market stress.
Silver and gold were already on strong upward trends after a record-breaking 2025, fueled by interest rate cuts, geopolitical tensions, and rising industrial demand. Silver has also benefited from increased use in electric vehicles, AI data centers, and new export restrictions from China.
Analysts warned that while prices remain strong, continued volatility is likely, especially as political pressure on the Federal Reserve and global supply concerns persist.
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