CIA’s Mysterious “Black Budget” Gold Bar Scheme Blows Up

Well, it looks like we can add CIA clandestine operations to the list of uses for gold in this day and age.

A former senior CIA official was just implicated in a scheme to apparently steal about $40 million in so-called "black budget" gold bars -- bars that he obtained from his U.S. government employer for unspecified “work-related expenses.”

The ex-CIA official, David Rush, was arrested on May 19, a day after the FBI raided his home and found the allegedly misappropriated gold.

According to charging papers, the FBI initially investigated Rush for lying on his resume. For instance, Rush allegedly claimed in an application to enter the “senior executive service” ranks that he was the “director of test” for a joint Army/Navy weapons test organization. However, his military records showed that he separated from the Navy in 2015.

As its investigation progressed, the FBI allegedly found that Rush made several requests to the government to obtain a “significant quantity” of foreign currency, as well as tens of millions of dollars in gold bars, for “work-related expenses” from last November to this March.

The charging papers don’t explain what those work-related expenses entail, nor do they identify Rush as having worked for the CIA. It was the New York Times that reported Rush’s CIA background. Presumably, the gold was intended for one or more covert operations.

The charging papers do say that the gold went missing from the government storage space where it was supposed to have been held. Agents allegedly found it at Rush’s home when executing a search warrant on May 18.

During the search, FBI agents seized approximately 303 gold bars, each of which weighs approximately one kilogram, court records say. Based on the current price of gold, the estimated value of that gold exceeds $40 million.

The report also states that agents seized about $2 million in U.S. currency, as well as 35 luxury watches.

Turning to the metals markets, gold and silver prices staged a modest recovery in recent days following a sharp pullback. Precious metals initially came under pressure after reports emerged that the United States and Iran supposedly reached a tentative agreement to extend a ceasefire and ease shipping restrictions through the Strait of Hormuz.

However, prices rebounded as market participants focused on the inflationary consequences of the recent Middle East conflict. U.S. inflation accelerated at its fastest pace in three years during April, largely due to higher energy costs linked to the Iran war.

The stronger inflation data reinforced expectations that the Federal Reserve will keep interest rates elevated for longer and raised concerns that additional rate increases could still be possible if inflation fails to moderate.

From a technical perspective, gold found strong support near the $4,365 level before recovering sharply and forming a bullish daily candlestick pattern. The broader $4,300-$4,400 area continues to serve as a key support zone. While gold remains below its 20-day and 40-day exponential moving averages, short-term momentum has improved, suggesting the metal may continue to stabilize and trade within a broad range unless support levels are decisively broken.

Silver experienced a similar pattern, declining toward support near $71 before rebounding strongly. The white metal has now retraced approximately 61.8% of its rally from $61 to $98, placing it within a significant technical support zone.

Although silver remains below key daily moving averages, improving hourly momentum indicators suggest downside risks may be limited in the near term. As long as support in the $70-$71 range holds, silver can be expected to consolidate with a mildly positive bias.

Checking in on the specifics here before we get to the interview, gold currently comes in at $4,577 an ounce, off a very slight 0.2% on the week. Silver has bounced off the lows seen earlier in the week, as previously stated, but still comes in with a 3.1% decline, checking in at $76.39 as of this Friday late morning recording.

Finally, platinum is down 2.3% to trade at $1,936 an ounce and palladium is off 2.5% to come in at $1,378.

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