I jumped Gold prices To a record high in trading on Monday, driven by escalating unrest in Iran, increasing political pressure on the US Federal Reserve, and weak US jobs data, which boosted demand for safe-haven assets.
The spot gold price rose by up to 2%, reaching a record level of $4,601.17 per ounce, and US gold futures rose by up to 2.5%, reaching $4,612.04 per ounce.
Other precious and industrial metals also achieved strong gains, with silver hitting a new record high, while platinum and copper settled near their highest levels.
Gold rose by more than 4% last week, mainly driven by demand for it as a safe haven after the escalation of tensions between the United States and Venezuela.
Bloody protests in Iran enhance the appeal of a safe haven
Demand for safe haven has been fueled by worsening unrest in Iran, where unrest linked to anti-government protests has killed more than 500 people, according to reports.
Tensions rose after Tehran warned it could target US military bases if President Donald Trump intervenes on behalf of protesters, raising fears of a broader regional conflict.
Trump told reporters yesterday, Sunday: “We are looking at the matter very seriously. The military is looking into the matter, and we are considering some very strong options.”
The US Department of Justice sends subpoenas to the Federal Reserve
Gold received additional support from political uncertainty in Washington after the US Department of Justice threatened the Federal Reserve with the possibility of criminal charges.
Federal Reserve Chairman Jerome Powell said the central bank had received subpoenas from a grand jury regarding its testimony before the Senate, a move that unnerved markets and revived concerns about the central bank’s independence.
These developments led to pressure on the US dollar, making gold cheaper for holders of other currencies, and enhancing its rising momentum.
Economic data also played a pivotal role in supporting gold prices. On Friday, US government data showed an increase in non-farm payrolls by 50,000 jobs in December, exceeding expectations for an increase of 66,000 jobs, while the unemployment rate fell slightly to 4.4%, which is lower than expectations of 4.5%.
The weak jobs data reinforced signs of a slowing labor market and raised expectations that the Federal Reserve may ease further in 2026.
Silver hits its highest level ever
Silver prices rose more than 5% to hit a new record high of $84.58 per ounce, while platinum rose 4% to $2,382.4 per ounce, approaching the record highs set last month.
Benchmark copper futures on the London Metal Exchange rose 1.5% to $13,194.25 per tonne, approaching a record high of $13,390 per tonne set last week.
US copper futures jumped 2% to $6.01 a pound, just below their historic high of $6.11 a pound.
