Silver was trading at $85 per ounce by 13:15 GMT on Monday, marking one of its highest price levels on record as markets absorbed fresh developments around the US Federal Reserve and broader dollar weakness.
The immediate catalyst was the Department of Justice’s criminal investigation into Federal Reserve Chair Jerome Powell, after grand jury subpoenas were issued over his congressional testimony on Fed headquarters renovations.
Powell characterised the legal action as politically motivated pressure tied to monetary policy decisions, which has unsettled investors over the central bank’s independence.
That uncertainty fed through to markets, pushing the US dollar lower as traders trimmed positions sensitive to rate expectations. A softer dollar typically raises the local currency price of commodities priced in dollars, making silver relatively cheaper for overseas buyers and increasing demand.
Markets are also pricing in higher odds of US interest‑rate cuts later this year, influenced by weaker economic data such as softer job growth in December and heightened debate on the future path of policy. Weaker interest rates reduce the opportunity cost of holding non‑yielding assets like silver, supporting higher prices.
Geopolitical developments in the Middle East and ongoing civil unrest in Iran have further contributed to risk aversion among investors, bolstering demand for precious metals as hedges.
On major commodity exchanges such as India’s MCX, silver futures climbed over 4% to fresh highs early in the session, tracking international market gains.
While broader safe‑haven demand and Fed‑related uncertainty are driving flows into silver, market conditions remain volatile.