Gold, Silver Hit New Highs as Bitcoin Trades Flat Ahead of Key Macroeconomic Events

Core Insights - Gold and silver prices surged to record highs as investors sought safe-haven assets amid a political crisis at the Federal Reserve and anticipated U.S. inflation data [1][2][3] Group 1: Market Performance - Silver outperformed gold, rising nearly 7% to trade near $85, while gold increased by 2.2% to reach a new record high of $4,600 [1] - Bitcoin remained relatively flat, decreasing by 0.2% over the past 24 hours [1] Group 2: Political and Economic Context - The rally in precious metals was driven by an unprecedented political crisis at the Federal Reserve, following a lawsuit against Chair Jerome Powell by the Department of Justice [2] - Rising geopolitical risks and uncertainty regarding U.S. monetary policy credibility have led to a shift towards safe-haven assets like gold and silver [3] Group 3: Market Sentiment and Predictions - Market sentiment is shifting, with a 79% chance assigned by users on prediction market Myriad that gold will reach $5,000 before Ethereum, up from 70% earlier in the week [4] - Additional factors influencing the market include renewed geopolitical tensions and soft labor data, which support the case for potential rate cuts, creating a bullish environment for non-yielding assets [5] Group 4: Upcoming Economic Data - Attention is focused on the upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) inflation readings, which are expected to test the sustainability of the recent rally [6] - Softer inflation and labor market data could reinforce expectations for future rate cuts, providing further support for gold and silver [6]