Gold's Record Surge
The precious metal has experienced a remarkable surge in demand, reflecting a growing preference for safe-haven assets amid rising concerns regarding the independence of the U.S. Federal Reserve and escalating geopolitical tensions.
Federal Reserve Under Scrutiny
The Federal Reserve is currently facing a criminal investigation involving its Chairman, Jerome Powell, following his testimony before the Senate Banking Committee last June.
Powell has publicly accused the administration of former President Donald Trump of exerting political pressure on the Fed to align with its policy directives, raising further questions about the central bank's autonomy.
Interest Rate Expectations
Market participants are factoring in expectations for potential interest rate cuts in the United States, particularly after a recent employment report indicated that job creation in December fell short of forecasts.
Investors are anticipating two rate cuts from the Fed within the year, although it is widely expected that the central bank will maintain its current monetary policy through the end of the month.
Geopolitical Tensions Remain High
Simultaneously, geopolitical tensions continue to escalate. The intensification of protests in Iran has heightened fears of a broader conflict, with reports suggesting that the U.S. President is considering various intervention options.