Gold and Silver Reach Record Levels While Bitcoin Remains Steady Before Major Economic Events

Precious Metals Reach New Heights Amid Federal Reserve Turmoil

Gold and silver soared to unprecedented levels on Monday, as investors flocked to safe-haven assets in response to escalating political uncertainty at the Federal Reserve and ahead of a crucial week for U.S. inflation indicators.

Silver led the surge, climbing nearly 7% since Friday to approach $85, while gold advanced 2.2% to set a fresh record at $4,600. In contrast, Bitcoin remained largely unchanged, slipping 0.2% over the past day, according to CoinGecko.

This dramatic upswing in precious metals was triggered by an extraordinary crisis at the Federal Reserve, following a Department of Justice lawsuit against Chair Jerome Powell, as previously reported by Decrypt.

Wenny Cai, Chief Operating Officer at Synfutures, explained to Decrypt that “gold and silver gained as investors sought refuge amid mounting geopolitical tensions and renewed doubts about the credibility of U.S. monetary policy.” She noted that the DOJ’s actions have introduced rare political risk, raising alarms about the independence of the central bank and prompting a shift toward metals.

Shifting Market Sentiment

Market dynamics are evolving rapidly. On the prediction platform Myriad, operated by Decrypt’s parent company Dastan, participants now estimate a 79% probability that gold will hit $5,000 before Ethereum does—a notable increase from 70% at the week’s outset.

Yaroslav Patsira, Fractional Director at CEX.IO, echoed Cai’s perspective, highlighting that renewed geopolitical strains and weaker labor market data are bolstering the case for interest rate reductions, which typically favor non-yielding assets like gold and silver.

Key Inflation Reports on the Horizon

Attention now turns to Tuesday’s release of the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI), which are expected to play a decisive role in determining whether the rally in precious metals can be sustained.

“This week’s most influential data will be the U.S. CPI and PPI inflation figures,” Patsira commented. “If the numbers come in lower than anticipated, it could strengthen expectations for rate cuts and further boost gold and silver.”

Cai agreed, adding that weaker inflation and labor data would likely reinforce the outlook for future rate reductions, which generally benefits assets like gold and silver that do not yield interest.

With precious metals standing at a critical crossroads, their ability to maintain these historic highs will soon be tested by upcoming inflation data, which will reveal whether their safe-haven status can withstand the latest macroeconomic developments.