Precious metals prices have risen very sharply along with copper, aluminum and other assets while the stock market has been wrestling with news of a DOJ criminal investigation into the Federal Reserve.

The DOJ investigation into the Fed has severe potential consequences because it undermines perceptions of Fed independence, which undermines the dollar, Treasury market creditworthiness, and economic growth.

Gold prices have risen from $2,660 to over $4,600 in a year, with technicians looking at a target of around $5,200.

The big driver is investment demand, which will continue because problems causing investors to buy gold and silver since 2019 haven't gotten better and many have worsened.

Prices are likely to stay strong and move higher over the course of the year, but after this parabolic move starting in early December, one has to worry about potential profit-taking by short-term investors.

Platinum and palladium prices have reached record levels, following gold and silver, but also face concerns about short-term profit-taking.

Fabricators are building inventories due to worries about supply interruptions from tariffs and trade restrictions, and because 20% of world financial wealth is in US dollars which has come under renewed pressure.

December CPI was up 0.3% month-over-month, with headline inflation at 2.7% and core inflation at 4%, showing inflation remains persistently above long-term targets.

Persistent inflation could confound the Trump administration's desire for lower interest rates, and even the Treasury has said the Fed investigation is bad for the dollar and US economy.

Persistently high CPI could confound the Trump administration's desire for lower interest rates. Even some Republicans and the Treasury have criticized undermining the Fed, warning it harms Treasury creditworthiness, the dollar, and the economy at a bad time.