Gold prices surged to an all-time high during Asian trading on Monday, as escalating unrest in Iran, growing political pressure on the Federal Reserve, and weaker U.S. labor data drove investors toward safe-haven assets.
Spot gold jumped as much as 2% to a record peak of $4,601.17 per ounce, before easing slightly to trade 1.4% higher at $4,574.85/oz by 01:59 ET (06:59 GMT). U.S. gold futures also posted strong gains, climbing up to 2.5% to $4,612.04 per ounce.
Other metals followed the rally. Silver surged to a fresh all-time high, while platinum and copper traded close to their respective record levels. Gold also ended last week with gains exceeding 4%, largely supported by heightened safe-haven demand after tensions flared between the U.S. and Venezuela.
Iran unrest lifts safe-haven demand
Demand for gold intensified as political turmoil deepened in Iran, where anti-government protests have reportedly resulted in more than 500 deaths. Market anxiety grew further after Tehran warned it could target U.S. military bases if Donald Trump intervenes in support of protesters, stoking fears of a wider regional conflict.
Speaking to reporters on Sunday, Trump said the situation was being taken “very seriously,” adding that strong options were under consideration.
Fed faces legal pressure in Washington
Gold was also supported by political uncertainty in the U.S. after the U.S. Department of Justice threatened the Federal Reserve with a possible criminal indictment. Fed Chair Jerome Powell confirmed that the central bank has received grand jury subpoenas related to his Senate testimony, unsettling markets and reviving concerns over central bank independence.
These developments weighed on the U.S. dollar, making gold more attractive for overseas buyers and adding further momentum to the rally.
Economic data also reinforced the bullish tone. U.S. government figures released on Friday showed nonfarm payrolls rose by just 50,000 in December, well below expectations for a 66,000 increase. The unemployment rate edged down to 4.4%, compared with forecasts of 4.5%.
The softer employment data strengthened expectations that the Federal Reserve could pursue additional monetary easing in 2026.
Silver hits record as metal markets rally
Silver prices jumped more than 5% to a new record high of $84.58 per ounce. Platinum advanced 4% to $2,382.4/oz, trading near record highs reached last month.
On the London Metal Exchange, benchmark copper futures rose 1.5% to $13,194.25 per ton, remaining close to last week’s record peak of $13,390.0. U.S. copper futures climbed 2% to $6.01 per pound, just shy of an all-time high of $6.11.
