Gold prices surged to a new all-time high on Monday, driven by escalating unrest in Iran, intensifying political pressure on the Federal Reserve, and softer U.S. labor market data that strengthened demand for safe-haven assets.
By 08:55 ET (13:55 GMT), spot gold had jumped 2.4% to $4,618.85 per ounce, after briefly touching a record peak of $4,620.33. U.S. gold futures rose even more sharply, climbing as much as 2.8% to $4,628.90 an ounce.
The rally extended beyond gold, with silver, platinum, and copper also posting strong gains. Silver reached a fresh record high, while platinum and copper hovered near their respective peaks.
Gold had already gained more than 4% last week, largely supported by safe-haven flows following a sharp escalation in tensions between the United States and Venezuela.
Iran unrest fuels flight to safety
Safe-haven demand intensified amid worsening turmoil in Iran, where anti-government protests have reportedly resulted in more than 500 deaths. The violence has heightened fears of broader regional instability.
Tensions escalated further after Tehran warned it could target U.S. military bases if President Donald Trump intervenes in support of protesters, raising concerns about potential military confrontation.
Trump said on Sunday that the situation was being closely monitored, adding that the U.S. military was evaluating possible responses and that strong options were under consideration.
Fed legal pressure adds to market anxiety
Gold prices were also supported by rising political uncertainty in Washington after the U.S. Justice Department moved toward potential legal action against the Federal Reserve.
Fed Chair Jerome Powell said the central bank had been served with grand jury subpoenas related to his Senate testimony. The development unsettled markets and reignited concerns about threats to the Fed’s independence.
These events weighed on the U.S. dollar, making gold more attractive for international buyers and adding momentum to the metal’s rally.
Economic data further bolstered bullion prices. U.S. nonfarm payrolls rose by just 50,000 jobs in December, falling short of expectations for a 66,000 increase, while the unemployment rate edged down to 4.4%, below forecasts of 4.5%.
The weaker jobs report reinforced signs of a cooling labor market and strengthened expectations that the Federal Reserve could pursue further monetary easing in 2026.
Silver and copper extend gains
Silver prices surged more than 7%, reaching a record high of $85.15 per ounce. Platinum climbed 3.6% to $2,379.20 an ounce, trading close to record levels set last month.
On the London Metal Exchange, benchmark copper futures rose 2.3% to $13,282.20 per ton, remaining near last week’s all-time high of $13,390. U.S. copper futures also advanced, jumping 2.5% to $6.0505 per pound, just below a record peak of $6.11.
