Gold Pushes to Fresh Record Highs as CPI Data and Fed Independence Fears Fuel Demand

Gold prices climbed to new record levels during Tuesday’s trading session, driven by rising concerns over the independence of the US Federal Reserve and renewed demand for safe-haven assets.


Investor appetite for gold strengthened after growing unease surrounding the central bank’s autonomy, following news that the US Department of Justice has opened an investigation related to official allegations against the Fed chair. These developments have heightened market anxiety about potential political pressure on monetary policy, encouraging investors to seek refuge in precious metals.


Adding to gold’s momentum, recent US inflation data pointed to easing price pressures. The core inflation reading for December came in weaker than expected, reinforcing expectations that the Federal Reserve may lean toward a more accommodative policy stance. Such expectations tend to support gold, which benefits from lower interest rate prospects.


Headline Consumer Price Index (CPI) figures for December painted a relatively reassuring picture of the US economy, showing stable price dynamics and inflation edging closer to the Federal Reserve’s target. Monthly CPI rose by 0.3%, matching the pace seen in November and aligning with market expectations. On an annual basis, inflation held steady at 2.7%, also in line with forecasts.



Core CPI, which excludes food and energy prices, increased by 0.2% on a monthly basis, matching the prior reading but falling short of expectations for a stronger rise. On a yearly basis, core inflation stood at 2.6%, unchanged from the previous year but slightly below market forecasts.


Concerns over monetary policy independence and signs of moderating inflation have reinforced gold’s appeal, helping propel prices to unprecedented levels as investors continue to prioritize safety and stability.