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Gold Hits $4,600 Amid Fed Chair Controversy

1/12/2026

23 3 Full Breakdown

Summary

Story summary

On January 12, 2026, gold and silver prices reached record highs due to geopolitical tensions and a criminal probe into Federal Reserve Chair Jerome Powell.
Gold rose to $4,600 per ounce.
Silver rose to $84 per ounce.
The spike followed threats from U.S. President Donald Trump's administration against Jerome Powell, raising concerns about the Fed's independence and prompting expectations of potential rate cuts.

History

Historical Context

In 1979, President Jimmy Carter appointed Paul Volcker as Chairman of the Federal Reserve to combat soaring inflation, which peaked at 13.3%. Volcker's aggressive interest rate hikes, reaching 20% by June 1981, aimed to stabilize the economy but led to a severe recession. Today’s rising precious metal prices reflect ongoing concerns about the Fed's independence and market confidence, echoing past economic volatility.

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Story summary

On January 12, 2026, gold and silver prices reached record highs due to geopolitical tensions and a criminal probe into Federal Reserve Chair Jerome Powell.
Gold rose to $4,600 per ounce.
Silver rose to $84 per ounce.
The spike followed threats from U.S. President Donald Trump's administration against Jerome Powell, raising concerns about the Fed's independence and prompting expectations of potential rate cuts.

1 / 2