What is the story about?
Gold and silver futures surged to fresh peaks in domestic and international markets on Monday, after investors flocked towards safe-haven assets amid rising
geopolitical tensions, as well as the US Federal Reserve and its chair facing a probe, PTI reported. Federal Reserve Chair Jerome Powell said the Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his June testimony about the Fed's $2.5-billion renovation of two office buildings, a project that President Donald Trump criticised as excessive.
Gold hits record high on MCX
On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped by Rs 2,431, or 1.8 per cent, to hit a record of Rs 1,41,250 per 10 grams, according to PTI. The yellow metal has climbed by Rs 3,058, or 2.25 per cent, over the past week.Meanwhile, Silver futures also rallied, with the March contract surging by Rs 11,271, or 4.46 per cent, to reach a lifetime high of Rs 2,63,996 per kilogram. The white metal zoomed by Rs 16,409, or 6.94 per cent, last week, s per PTI.
Global Markets
In the global markets, gold for February delivery on the Comex appreciated by $111.8, or 2.5 per cent, to hit a fresh peak of $4,612.7 per ounce, while silver for the March contract soared by $4.56, or 5.8 per cent, to touch a historic level of $83.90 per ounce.What experts are saying?
According to market experts, the rally in gold and silver prices was driven by deepening unease surrounding the Federal Reserve after the US Federal prosecutors launched a criminal investigation into Chair Powell over the central bank's renovation of its Washington headquarters.The move came amid rising tensions between the White House and the Fed, an institution Trump has repeatedly criticised for not cutting interest rates as sharply as he prefers, PTI report stated.
Analysts said the probe has intensified concerns over the Fed's independence, raising doubts about the stability of US monetary policy and fuelling a rush into safe-haven assets such as gold and silver.
The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading lower at 99.03, lending support to the bullion prices in the global markets.
Adding to the uncertainty, President Trump is considering military action against Iran following violent anti-government protests, saying Tehran had crossed a "red line", analysts said.
Meanwhile, the United Nations has called an emergency meeting after Russia allegedly deployed a new ballistic missile in a large-scale strike on Ukraine. These developments have combined to fuel uncertainty across global markets, weakening the dollar and pushing investors towards safe-haven assets. (With Agency Inputs)
