Fed sends surprising message on gold and silver price surge
If you own gold or silver right now, you’re probably feeling smart and a little anxious at the same time.
I’ve been following this movement step by step, and the most striking thing is how calm it is. Jerome Powell Sounds nice compared to what gold and silver actually do.
It was stated that gold climbed to $ 5,600 per ounce after an increase of approximately 64% last year. Economic Times. The report also emphasizes that silver is rapidly moving towards the 120 dollar level due to investment demand, industrial use and limited supply.
At the same press conference where these price movements hung over the market, Powell told reporters not to “get too much macroeconomic messaging” about significant price increases in precious metals, as highlighted in a clip posted on Cointelegraph’s website. X (formerly Twitter) page.
This one line is the clearest view you’ll ever get of what the Fed thinks about this rally in metals.
Jerome Powell downplays signal from precious metals.Shutterstock ·Shutterstock
It wasn’t just that gold was at record levels that made people angry. Powell was trying to separate this price action from the Fed’s response function.
“Jerome Powell tells us not to look too hard at the rise in gold prices,” Cointelegraph said in the clip’s caption. X he paraphrased his answer to a question about the metal’s rise during the press conference.
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Meanwhile, the moves were far from minor.
Gold recently rose above $5,000 an ounce on safe-haven demand tied to geopolitical tensions and uncertainty over the Fed’s future policy before expanding towards the $5,600 region. Plus500.
More Gold:
Combination of rate cut expectations, geopolitical stress and central bank diversification while driving precious metals to record or near-record highs, sharp pullbacks remain a real threat after such a steep rise. CME Group analysis.
When I put these pieces together, I feel like the Fed is quietly saying, “We see this, but we’re not going to let gold bully us,” which is not the message metals traders want to hear.
Powell tried to calm things down, but that didn’t work with the moneyed crowd. Peter Schiff, who has been making the case for gold and silver for years, quickly framed the market’s reaction as a referendum on the Fed.
“I was tapped and couldn’t listen to Powell’s press conference. But judging by the reaction in precious metals, his speech did nothing to improve confidence in the U.S. economy or the dollar. Gold rose above $200 an ounce and silver rose above $4,” Schiff wrote. X.
This is the pure gold strike of the day: Metals weren’t just reacting to the data, they were reacting to Powell himself.
In a pursuit X Schiff said in the post: “Powell basically said the recent jump in gold was irrelevant to Fed policy. But when Greenspan was Chairman, he said he watched gold closely because it was the best indicator of whether interest rates were too low or too high. How could a once-critical metric no longer be valid?”
His point is simple: If you stop looking at the dashboard light warning you about loose policy, can you really be surprised if markets stop trusting you?
This fits with the way he talks about this move more broadly.
Gold’s move towards $6,000 and silver’s move towards triple-digit levels could herald the loss of control over gold. inflation and according to Schiff’s predictions, the dollar Financial Bosses.
According to Schiff’s comments, rising gold and silver are a sign that investors are preparing for a deeper financial crisis and should view the metals as essential safe-haven assets rather than niche trades. Binance.
I don’t think you have to agree with his price targets to take this broad warning seriously: There is a real constituency that believes the Fed is behind the curve and that the rally in metals is the market’s way of saying so.
Beneath the social media noise is a numbers story you can’t ignore.
The Fed kept the policy rate constant and emphasized that inflation was still above the 2% target, signaling that there would be no rush for aggressive reductions. Economic Times noted. Futures markets continue to price cuts of around 150 basis points throughout 2026, making a big assumption that policy on gold and silver prices will be easier. Financial Bosses.
This hit to real yields, combined with geopolitical risk and central bank buying, is the main reason why metals have risen so far and so quickly. CME Group.
This leaves you in an uncomfortable situation.
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On the one hand, Powell is telling you not to over-interpret precious metals and expect policy to be driven by his every move. On the other hand, the metals and futures curve is trading as if the Fed is halfway to easier money.
Here’s how I can summarize what the available data and interpretations mean for someone who manages their own money.
Gold has already made a massive two-year gain and a massive rally above $200 on FOMC day; This means that if you buy now, your future returns are much more dependent on timing.
According to Schiff, silver increased by more than $ 4 in a single session after Powell’s comments x postIt followed a more volatile course than gold, strengthening both upward and downward oscillations.
Spot inflation as well as real yields, interest rate cut expectations and faith in the Fed drive the story.
This doesn’t tell you what to do. If you buy here it says you’re not just betting on metals. You’re betting on a particular view of how far Powell will or won’t move from his current stance.
If I were creating or revising a plan right now, I’d start by deciding exactly what job I wanted the metals to do. Are you using gold and silver as long-term insurance against inflation and political risk, or are you trying to ride a wave of momentum that you hope doesn’t end?
Here’s how I turn all this into real decisions:
If your gold and silver positions have ballooned after the recent rally, I would seriously consider going back to your original allocation and preserving some gains rather than letting the hedge become your biggest risk.
If you’ve never owned metal and feel like you “have to” after this week, I’d prefer to slowly build positions via dollar cost averaging rather than chasing a $200 FOMC daily move all at once.
If your real fear is that the Fed will actually stop paying attention to gold, as Schiff worries, I’d lean more on gold as a core hedge and treat silver and the miners as high-beta moons on a smaller scale.
None of this requires you to guess the exact text of the next press conference. This requires you to respect the fact that Powell told you in so many words that the Fed would not consider gold’s rise as an order, while a loud side of the market insists that the rise was a verdict on the Fed’s credibility.
