Gold Holds Firm Following Sharp Rise Amid Concerns About Federal Reserve’s Autonomy

Gold Holds Steady Amid Concerns Over Fed Autonomy

Gold prices remained stable following a sharp rise on Monday, as apprehensions grew regarding the Federal Reserve’s independence. This comes after the Trump administration threatened the central bank with possible criminal charges.

The price of gold hovered around $4,588 per ounce, maintaining gains after a 2% surge in the previous trading session. Federal Reserve Chair Jerome Powell responded with a strong statement, both written and on video, emphasizing that the threat of indictment should be viewed within the larger pattern of pressure and threats from the administration.

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Last year, repeated criticisms of the Federal Reserve by the Trump administration played a significant role in driving gold to new record highs. Political interference has the potential to weaken the central bank’s capacity to control inflation, which in turn can put pressure on the US dollar and government bonds, while making gold more attractive as a safe haven asset.

As of 7:37 a.m. in Singapore, spot gold had dipped 0.2% to $4,587.96 per ounce. The Bloomberg Dollar Spot Index showed little movement. Meanwhile, silver declined by 1.2%, following a surge of over 6% the previous day.

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