Gold steadied after surging on Monday on worries over the Federal Reserve\u2019s independence after the Trump administration threatened Chair Jerome Powell with a criminal indictment.<\/p>\n
Bullion traded near $4 585 an ounce after jumping 2% in the previous session as Powell said the potential indictment was a continuation of attempts to pressure the central bank. The latest attack on the Fed revived the \u201csell America\u201d trade, with the dollar dropping on Monday and Treasuries selling off across the curve.<\/p>\n
![\"\"](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2026\/01\/447461829-555x342.jpg\")
<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
President Donald Trump\u2019s aggressive calls for lower interest rates have threatened to undermine the Fed\u2019s ability to control inflation and contributed to the so-called debasement trade where investors sell the dollar and other assets vulnerable to political and fiscal shocks. The Department of Justice probe into Powell prompted lawmakers from the president\u2019s own Republican party and Treasury Secretary Scott Bessent to warn Trump the move could be bad for markets.<\/p>\n
Attacks on the Fed helped propel gold to successive record highs last year, along with heightened trade and geopolitical risks and central bank buying. With Trump seizing Venezuela\u2019s leader, threatening to take Greenland and renewing his campaign against Powell, precious metals are carrying that momentum through to 2026.<\/p>\n
That prompted Citigroup to forecast that gold will reach $5 000 an ounce and silver will get to $100 an ounce in the next three months. The white metal has outperformed gold thanks to a historic short squeeze, US tariff fears and rising industrial use, though borrowing costs for the metal have since eased.<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
\u201cWe expect the bull market to stay intact in the near term amid heightened geopolitical risks, ongoing physical market shortages, and renewed uncertainty on Fed independence,\u201d Citi analysts said in a note. \u201cOur base case is for eventually moderating geopolitical risks to weigh on hedging demand for precious metals later in the year, particularly on gold.\u201d<\/p>\n
Spot gold fell 0.3% to $4 584.16 an ounce as of 10:28 a.m. Singapore time. The Bloomberg Dollar Spot Index was flat. Silver dropped 0.8%, while platinum was down 1.4% and palladium down 2%.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n