Gold Price and the Impact of Criminal Investigation
The price of gold has reached $4600 per ounce for the first time due to a criminal investigation against Federal Reserve Chair Jerome Powell. This increase is linked to a rise in demand for gold, which has become a popular asset amid political risk in the U.S. The criminal investigation was initiated by former President Donald Trump.
At the same time, prices for other precious metals also demonstrated positive dynamics:
- Silver rose by 4.8% to $83.78 per ounce, peaking at $84.60 per ounce.
- Forecasts for silver prices suggest a potential rise to $90 or $100 per ounce.
- Platinum increased by 3.5% to $2352.90.
- Palladium rose by 2.5% to $1860.43.
Political Risks and the Precious Metals Market
Experts note that the situation surrounding the Fed has affected the market. Zain Wavda stated:
“As the independence of the Fed is now openly challenged, the discount for 'political risk', usually characteristic of emerging markets, shifts onto the U.S. dollar, pushing investors towards hard assets.”
At the same time, Jerome Powell himself commented on the situation, noting that 'threats regarding my indictment from testimony in Congress are merely a 'pretext'.'
Furthermore, Goldman Sachs predicts two rate cuts in June and September, which may also impact the precious metals market. Overall, the current situation surrounding the Fed and political risks are becoming important factors driving the price dynamics of gold and other metals.
The rise in gold prices and other precious metals reflects the growing interest of investors in assets deemed safer amid political instability. The criminal investigation against Jerome Powell may increase uncertainty in the market, in turn fueling demand for gold. Predictions from Goldman Sachs regarding rate cuts could further support this trend, as lowering interest rates typically makes investments in gold more attractive compared to yields on bonds and other assets.