Gold and silver are rallying ahead with no signs of weakness, at least in the near term. With increased uncertainty, there is a strategic allocation to precious metals, which is driving the prices of gold and silver upward. Some of the latest triggers and factors leading the powerful rallies in gold and silver are being seen in the precious metals market.
Fed’s Independence
Fed Chair Jerome Powell has accused the Trump administration of pressing the central bank to follow its policy preferences. This comes after US federal prosecutors began a criminal investigation against Powell in connection with his Testimony before the Senate Banking Committee in June.
Trump has denied plans to remove Powell from office, yet the administration is pressuring him to resign before his term as Chair ends in May 2026. This interference in the operations of an independent central bank is viewed unfavorably by global investors, and it could further erode the credibility of the US Fed, potentially influencing gold and silver prices.
In a note published in November, Rhona O’Connell, StoneX, Head of Market Analysis for EMEA and Asia, said that questions surrounding the Fed’s independence could create the next $500 move in gold, reports Kitco.
US Fed Rate Cut
Expectations of a further US rate cut provided additional support as Friday’s data revealed that December job growth slowed more than anticipated. Despite the widespread expectation that the central bank will maintain policy later this month, traders are still pricing in two Fed cuts this year. A rate cut supports gold and silver prices. Markets are now focused on today’s US CPI report for further clues on the Fed’s rate path.
Geopolitical Tensions
Uncertainty is increased by recent US-related tensions, such as activities in Venezuela, talks between Greenland and Iran, and growing tensions with Mexico and Cuba. China’s export restrictions on goods to Japan that could be used for military purposes have increased regional risk in Asia.
Geopolitical tensions remained high, with US President Donald Trump apparently weighing options for potential action as escalating protests in Iran increased the likelihood of a wider war.
Following President Trump’s warning of strikes amid enormous protests in Iran that have reportedly resulted in hundreds of deaths, the speaker of Iran’s parliament cautioned the US and Israel against any action.
Gold, Silver Prices
Silver is up 13% in the first 13 days of 2026 after a record-breaking run of over 150% in 2025. On Tuesday, Silver trades at close to $85, and gold is finding support at $4588, after dipping below $4,600. According to the World Gold Council, resistance from the October/December 2025 “triangle” pattern is still seen higher at US$4,770/oz.
Gold price today in India and silver rate today in India are holding up at higher levels.
Rhona sums up on the way gold and silver are reacting to external factors – “Gold and silver markets are navigating a period where uncertainty is no longer emerging but embedded, shaping price behavior in more complex ways. Record highs reflect accumulated geopolitical, political, and institutional risks that have been layered into prices over time. As a result, new headlines increasingly trigger sharp reactions that fade quickly rather than establishing lasting trends. This environment raises the stakes for volatility and positioning rather than simple bullish or bearish calls.”
However, Investors should exercise caution at current high levels, as prices may decline sharply with changes in underlying factors. As a retail investor, it is essential to invest in gold or silver with a long-term perspective, as the recent extraordinary returns in these metals are not expected to continue.