Probe Launched into the Fed: Gold Prices Start the Week with Double Records
Probe Launched into the Fed: Gold Prices Start the Week with Double Records
U.S. federal prosecutors have launched a criminal investigation into renovation works at the Federal Reserve’s headquarters in Washington, D.C., a project with a reported cost of $2.5 billion. The move increased uncertainty across financial markets.
The investigation focuses on the use of public funds and drew a strong reaction from Federal Reserve Chair Jerome Powell.
Powell pushes back against the probe
Powell argued that the real reason behind the investigation was a disagreement with the administration over interest rate policy, describing the case as a “pretext.”
He said the process was driven by ongoing threats and pressure, adding that it sends a deterrent message not only to him but also to future Fed chairs.
Uncertainty fuels safe-haven demand
The probe into the Fed and its chair heightened uncertainty, prompting investors to turn to safe-haven assets at the start of the week.
Iran tensions weigh on risk appetite
Geopolitical tensions also intensified. Reports said more than 500 people were killed during protests in Iran, while Tehran warned it could target U.S. military bases if attacked.
U.S. officials said President Donald Trump would be briefed on potential steps regarding the situation in Iran on Tuesday.
Gold and silver hit new highs
Amid rising uncertainty, spot gold climbed to as high as $4,601.28 per ounce before settling at $4,569, up 1.37% from Friday.
Gram gold reached a record high of 6,383 TRY before easing slightly to 6,332 TRY, still up 1.30%.
Silver posted even sharper gains, rising 4.54% to $83.44 per ounce after testing $84.01 earlier in the session.
