Gold prices stabilized near $4,588 per ounce on Tuesday while silver declined after both precious metals surged to fresh all-time highs in the previous session. The volatility followed Trump administration's criminal probe into Federal Reserve Chair Jerome Powell, which sparked renewed concerns about central bank independence and triggered significant market movements.

Record-Breaking Performance

Both metals achieved unprecedented levels on Monday before experiencing mixed trading on Tuesday. The following table shows the recent price movements:

Gold maintained its position near record levels after surging 2% in the previous session, while silver retreated 1.4% following its substantial Monday gains of over 6%.

Market Impact of Fed Probe

The Trump administration's actions against the Fed Chair revived what traders call the "sell America" trade, creating broad market disruptions. The dollar dropped on Monday while Treasuries sold off across the yield curve. This intervention threatened to undermine the Federal Reserve's ability to control inflation, weighing on traditional markets and sparking the debasement trade where investors sell dollars and assets vulnerable to political and fiscal shocks.

Trump's repeated attacks on the monetary authority were identified as a major factor that propelled gold to successive record highs in the previous year, and the yellow metal has built on that momentum to start the current year strongly.

Analyst Outlook and Projections

Citigroup upgraded its near-term precious metals outlook significantly, citing multiple supportive factors:

The bank's upgraded targets reflect heightened geopolitical risks, physical shortages in silver markets, and renewed uncertainty about Federal Reserve independence.

Historical Performance Context

Both metals delivered exceptional returns in the previous year, setting new performance benchmarks:

Many traders remain confident in the metals' longer-term appeal, viewing current political and monetary uncertainties as supportive factors for continued strength in precious metals markets. The combination of geopolitical tensions, currency debasement concerns, and central bank independence issues continues to drive investor interest in gold and silver as alternative stores of value.

Gold prices retreated on Tuesday following a historic milestone, as investors engaged in profit-booking after the precious metal breached $2,600 per ounce for the first time. The pullback came amid a complex backdrop of geopolitical tensions and monetary policy uncertainties that continue to support the safe-haven appeal of bullion.

Gold Market Performance

Spot gold declined in early Asian trading, reflecting typical market dynamics following a significant breakthrough. The precious metal's recent performance highlights the ongoing demand for safe-haven assets amid global uncertainties.

Geopolitical Developments Drive Market Sentiment

Trump's latest policy announcements have added fresh uncertainty to global markets. The administration declared that any country conducting business with Iran will face a 25% tariff on trade with the United States, as Washington considers its response to Iran's largest anti-government protests in years.

The geopolitical landscape has become increasingly complex with Trump's assertive international stance. Recent developments include the ousting of Venezuelan President Nicolas Maduro and ongoing discussions about acquiring Greenland through purchase or force, demonstrating the administration's willingness to flex American influence globally.

Federal Reserve Investigation Impacts Dollar

The dollar maintained its position near one-month highs despite facing headwinds from the Trump administration's decision to open a criminal investigation into Federal Reserve Chair Jerome Powell. This unprecedented move has raised concerns about central bank independence and faith in US assets, drawing widespread criticism from former Fed chairs and Republican Party members.

The investigation has sparked debate about monetary policy independence, even as major brokerages maintain their expectations for interest rate adjustments. Goldman Sachs and Morgan Stanley both anticipate two 25-basis-point rate cuts each in June and September, reflecting ongoing economic considerations.

Market Outlook and Safe-Haven Demand

Non-yielding assets like gold typically perform well during periods of low interest rates and heightened geopolitical or economic uncertainties. The current environment, characterized by multiple sources of global tension and monetary policy questions, continues to support demand for precious metals despite short-term profit-taking activities.

The broader precious metals complex experienced similar retreat patterns, with silver, platinum, and palladium all declining from recent highs as investors reassessed positions following the strong rally that brought multiple metals to record levels.