Gold prices surged during Asian trading on Wednesday, reaching new all-time highs as softer U.S. inflation data reinforced expectations for upcoming interest-rate cuts by the Federal Reserve, while escalating geopolitical tensions in Iran strengthened demand for safe-haven assets.
Spot gold climbed more than 1% to a record $4,640.13 per ounce by early morning GMT, breaking above the previous session’s peak of $4,634.33. U.S. gold futures for March delivery also advanced around 1%, trading at $4,643.10 per ounce.
Silver outperformed the broader precious metals complex, soaring over 4% to a fresh record of $91.56 per ounce. Strong industrial demand combined with heightened risk aversion continued to fuel silver’s rally. Platinum prices also moved sharply higher, rising as much as 4% to $2,444.21, close to record levels reached last month.
Softer US inflation and Iran unrest lift safe-haven demand
U.S. consumer price data released on Tuesday showed inflation cooling more than expected. Core CPI increased by just 0.2% in December and 2.6% year-on-year, undershooting forecasts and reinforcing market expectations for future rate cuts. Investors are now pricing in roughly two Federal Reserve rate reductions in 2026.
Analysts at ING noted that easing labor-market conditions could leave room for even deeper monetary easing. Lower interest rates typically support non-yielding assets such as gold by reducing the opportunity cost of holding them.
Geopolitical risk also remained a key driver. Iran has been shaken by intensifying anti-government protests that have reportedly resulted in around 2,000 deaths, raising concerns over broader instability across the Middle East.
The situation drew warnings from Donald Trump, who cautioned that military action remained a possibility and threatened to impose a 25% tariff on countries conducting business with Iran. Trump also encouraged protesters to intensify pressure on Iranian authorities through public statements on social media.
Fed independence concerns add to gold’s appeal
Additional support for gold came from renewed worries over the independence of the U.S. central bank, after the Trump administration opened a criminal investigation involving Federal Reserve Chair Jerome Powell. While the development unsettled markets, senior central bankers and major banking executives publicly defended Powell, emphasizing the importance of protecting the Fed’s autonomy from political influence.
Elsewhere in the metals market, benchmark copper futures on the London Metal Exchange rose 0.4% to $12,237.20 per ton, while U.S. copper futures jumped 1.1% to $6.07 per pound. Palladium also posted strong gains, climbing as much as 4% to $1,911.23 per ounce.
