Gold prices advanced on Wednesday, reaching fresh record highs as escalating geopolitical tensions in Iran strengthened demand for traditional safe-haven assets.
By 10:00 ET (15:00 GMT), spot gold was up 0.6% at $4,612.59 an ounce, after earlier rising more than 1% to an all-time high of $4,641.94. This move surpassed the previous record of $4,634.33 set in the prior session. U.S. gold futures for March delivery also moved higher, gaining 0.5% to $4,620.70 an ounce.
Silver significantly outperformed gold, jumping more than 4% to a new record of $91.56 an ounce. Strong industrial demand, combined with rising safe-haven flows, continued to fuel silver’s sharp rally. Platinum prices were also firmer, climbing 1.3% to $2,383.50 an ounce after earlier touching $2,462.80, close to record levels reached last month.
Iran unrest lifts safe-haven demand
Geopolitical risks remained at the forefront of market attention, providing strong support for precious metals. Iran has been shaken by intensifying anti-government protests that have reportedly resulted in around 2,000 deaths, raising concerns about broader instability across the Middle East.
The situation has prompted warnings from U.S. President Donald Trump, who cautioned that military action remained a possibility and threatened to impose a 25% tariff on countries continuing to do business with Iran. Trump also called on protesters to increase pressure on Iranian authorities, posting on social media that they should “take over your institutions” and that “help is on its way.”
Tehran, meanwhile, warned U.S. allies in the region that it would target American military bases if Washington launched an attack. Reports also indicated that some personnel were advised to leave a U.S. military base in Qatar, adding to investor anxiety.
U.S. inflation data adds support
Gold prices were further underpinned by signs of easing inflation in the United States. Data showed that producer prices rose only modestly in November, suggesting businesses may be absorbing some of the costs associated with tariffs on imports.
The Producer Price Index for final demand increased 0.2% in November, following a 0.1% rise in October, according to the Bureau of Labor Statistics. This came after data released a day earlier showed core consumer prices rose just 0.2% in December and 2.6% year-on-year, both below expectations. Markets are now pricing in roughly two interest-rate cuts in 2026.
“Two Fed rate cuts look entirely achievable, with risks tilted toward a third as the labor market cools,” analysts at ING said in a recent note. Lower interest rates typically support non-yielding assets such as gold by reducing their opportunity cost.
Fed independence concerns offer additional backing
Additional support for bullion came from renewed worries over the independence of the Federal Reserve after the Trump administration opened a criminal investigation involving Fed Chair Jerome Powell.
While the development unsettled financial markets, central bank officials and senior banking executives publicly voiced support for Powell, emphasizing the importance of maintaining the Fed’s independence from political influence.
Elsewhere in metals markets, benchmark copper futures on the London Metal Exchange edged up 0.3% to $12,222 per ton, while U.S. copper futures gained 0.6% to $6.0540 a pound. Palladium prices also surged, rising as much as 4% to $1,911.23 an ounce.
