Precious Metals Surge as FOMC Meeting Approaches: Will Trump Add Volatility to the Week?

Gold and silver are pushing toward historic milestones as the market braces for another eventful week. Silver has crossed the $100 threshold, while gold hovers just below $5,000—achievements that signal strong momentum in the precious metals space. But here’s the catch: the real market mover might not be the metals themselves, but rather the policy decisions and political surprises waiting in the wings. With tensions simmering around Iran and weekend anxiety creating market jitters, investors are gearing up for a potentially turbulent stretch ahead. The headline act? The FOMC meeting, which will set the tone for everything else.

The FOMC Decision: This Week’s Central Event

The most critical moment comes Thursday morning when the Federal Reserve will announce its interest rate decision. Immediately following at 3:30 AM, Fed Chair Powell will host a monetary policy press conference—a session where markets hang on every word. This isn’t just another routine announcement; the FOMC meeting will likely trigger significant moves across asset classes, especially given the current elevated tensions and market positioning.

Before Thursday’s decision, however, several economic breadcrumbs will guide expectations. On Tuesday at 11 PM, the Conference Board will release January’s Consumer Confidence Index alongside the Richmond Fed Manufacturing Index. Thursday afternoon will also see initial jobless claims data and the November trade balance figures hit the wires at 9:30 PM. These numbers matter because they inform how severe the Fed’s stance needs to be in its monetary policy framework.

Economic Calendar Packed with Data

The data release schedule is relentless. Friday brings the December Producer Price Index (PPI) and Canada’s November GDP figures at 9:30 PM, followed by the Chicago PMI for January at 10:45 PM. Each report adds another layer of context to what the FOMC decision might mean for interest rates going forward.

What makes this week uniquely charged isn’t just the volume of data—it’s the uncertainty surrounding policy direction. Will the Fed stay hawkish, or are rate cuts around the corner? The answers embedded in Thursday’s decision and Powell’s commentary could reshape market trajectories across equities, bonds, and commodities.

The Trump Wildcard: Fed Chair Nomination Steals the Spotlight

Perhaps the most intriguing subplot unfolding next week is Trump’s expected announcement of his nominee for the next Fed Chair. Rather than letting Powell’s authority command center stage, Trump appears poised to inject his own political agenda into the conversation. He’s reportedly narrowed down his choices to four candidates: White House economic advisor Hassett, Federal Reserve Governor Waller, former Federal Reserve Governor Warsh, and Rick Rieder, BlackRock’s chief bond investment manager.

This nomination announcement could easily overshadow the FOMC meeting itself—a power play designed to signal Trump’s influence over monetary policy before Powell even speaks. Markets are already bracing for this political theater to add another layer of complexity to an already volatile week.

The convergence of the FOMC meeting, economic data releases, and Trump’s policy moves creates a perfect storm of uncertainty. Gold and silver bulls have already made their bet by pushing precious metals into record territory. Whether the FOMC meeting validates their conviction—or sparks a dramatic reversal—remains the week’s defining question.