Gold and Silver Prices Surge as Market Anxiety Over Federal Reserve Policies Intensifies

Precious metals surged sharply on January 12, 2026, as escalating political and economic pressure on the Federal Reserve prompted a wave of investor caution. Gold futures on the Comex exchange rose 4.2% to settle at $2,418 per ounce, marking their largest single-day gain since September 2024. Silver, historically more volatile, climbed 6.8% to $32.70 per ounce, driven by both speculative momentum and strategic portfolio reallocation. The rally was fueled by recent legislative proposals and public commentary from congressional leaders calling for increased oversight of the Fed’s monetary authority. These developments have intensified concerns that future rate decisions may be influenced by political rather than economic indicators, undermining confidence in the central bank’s independence. As a result, investors turned to gold and silver as hedges against potential inflationary surprises and currency devaluation. Market data shows that the SPDR Gold Trust (GLD) saw inflows of $1.4 billion over the past three trading sessions, while the iShares Silver Trust (SLV) recorded net purchases of $820 million. These movements indicate strong institutional involvement, signaling a systemic shift in asset allocation away from equities and bonds into tangible, non-depreciating assets. The rally also impacted related sectors, with shares in major mining companies such as Newmont Corporation (NEM) and Freeport-McMoRan (FCX) rising 7.3% and 5.9%, respectively, on increased optimism about higher metal prices and improved margins.