Gold Steadies After Surging on Worries Over Fed Independence

(Bloomberg) — Gold steadied after surging on Monday on worries over the Federal Reserve’s independence after the Trump administration threatened Chair Jerome Powell with a criminal indictment.

Bullion traded near $4,588 an ounce after jumping 2% in the previous session as Powell said the potential indictment was a continuation of attempts to pressure the central bank. The attack on the Fed revived the “sell America” trade, with the dollar dropping on Monday and Treasuries selling off across the curve.

Most Read from Bloomberg

Trump’s intervention has threatened to undermine the Fed’s ability to control inflation and weighed on markets, sparking the so-called debasement trade where traders sell the dollar and other assets vulnerable to political and fiscal shocks. His repeated attacks on the monetary authority were a major factor propelling gold to successive record highs last year.

The yellow metal has built on that momentum to start 2026 on a strong footing, and many traders are confident in the metal’s longer-term appeal. Citigroup Inc. upgraded its near-term outlook to see gold at $5,000 an ounce and silver at $100 an ounce in the next three months, given heightened geopolitical risks, physical shortages and renewed uncertainty about Fed independence.

Spot gold fell 0.2% to $4,585.35 an ounce as of 9:04 a.m. Singapore time. The Bloomberg Dollar Spot Index was flat. Silver dropped 1.4% after surging by more than 6% on Monday.

Most Read from Bloomberg Businessweek

©2026 Bloomberg L.P.