Gold and silver soar to fresh highs on Fed investigation

Important events are continuing to unfold frenetically over the weekend.

The most shocking, however, was the criminal investigation of the US central bank. In particular, the US Justice Department is examining whether an indictment can be charged against the Fed chairman, Jerome Powell, over a testimony he made in June last year.

Immediately, gold and silver soared. Why? Simply because investors are worried that this latest development will set a precedent in future monetary policies where independence is no longer guaranteed.

Not to forget that the chief of Bureau of Labor Statistics (BLS) was fired by the White House last September.

First, let’s look at silver. The metal is clearly on fire. Prices hit an all-time high today, changing hands at around $83-84.

As its daily chart shows, the element “AG” is on a parabolic climb. The current rally is the third historic boom since the seventies.

With such a strong momentum behind it, reaching triple-digit levels is no longer a distant scenario. Silver’s rally is dragging most silver miners up.

For gold, the near-term target remains at $5,000. Once reached, I anticipate a consolidation around this area as traders book profits.

As for platinum, its long-term chart is equally looking fabulous.

The near-vertiginous climb from $1,000 took out most resistance levels with ease. As other precious metals advance into unchartered territories, associated buying may kick platinum higher.

The medium-term target here is seen at $3,000.

One large platinum miner on LSE is the £17 billion Valterra Platinum (VALT).