Concerns Over Fed Independence and Expectations of Rate Cuts
Gold Price Also Hits All-Time High
The international price of silver has surpassed $90 per ounce for the first time in history.
According to Bloomberg, as of 2:00 p.m. on January 14, the international spot price of silver soared 4.73% from the previous session to $91.0676 per ounce, breaking through the $90 mark for the first time ever. After surpassing $70 on December 23 and $80 on December 29, the price has now been pushed up to $90.
At the same time, the international spot price of gold also rose 1.07% from the previous session to $4,635.59, exceeding the all-time high of $4,634 recorded the previous day. A combination of factors-including attacks on the Federal Reserve by the Donald Trump administration, the possibility of further U.S. interest rate cuts, and ongoing geopolitical tensions-are seen as driving the rally in precious metals.
Last year, international gold and silver prices surged by 64% and 142%, respectively, marking the largest increases in 45 years. This year, the strong upward trend has continued from the beginning of the year. Growing concerns about the independence of the central bank have arisen as the possibility of criminal charges against Fed Chair Jerome Powell is being discussed.
In response, the heads of 11 central banks around the world have publicly expressed their support for Powell, and Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the United States, also criticized the situation, saying, "It will raise inflation expectations and probably have the counterproductive effect of increasing interest rates over time."
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