Gold Price Hits Record Above $4,600 as Global Tensions Drive Safe-Haven Demand

Gold Price Hits Record Above $4,600 as Global Tensions Drive Safe-Haven Demand

Iran unrest, US political pressure and weaker jobs data push precious metals sharply higher

Gold Reaches New All-Time High

Gold prices surged to a fresh record above $4,600 per ounce during Asian trading, as investors sought safety amid escalating geopolitical tensions and growing uncertainty over US monetary policy. The rally reflects a sharp rise in demand for safe-haven assets as global risks intensify.

Spot gold climbed as much as 2% to a peak of $4,601 an ounce, while US gold futures briefly traded above $4,612. The precious metal has now gained more than 4% over the past week alone.

Iran Unrest Fuels Flight to Safety

One of the key drivers behind the surge in gold prices is the worsening situation in Iran. Reports indicate that ongoing anti-government protests have resulted in more than 500 deaths, significantly raising geopolitical risk across the region.

Tensions escalated further after Tehran warned it could target US military bases if Donald Trump intervenes in support of protesters. The threat of a wider regional conflict has prompted investors to move capital into traditional safe-haven assets such as gold.

Periods of political instability in the Middle East have historically been supportive for bullion, and current events have reinforced gold’s role as a store of value during crises.

Political Pressure on the Federal Reserve Adds to Uncertainty

Gold prices were also boosted by political developments in Washington. The U.S. Federal Reserve has been served with grand jury subpoenas linked to Senate testimony by its chair, Jerome Powell.

The move, reportedly initiated by the U.S. Department of Justice, has unsettled financial markets and raised concerns over the independence of the central bank. Any perceived threat to the Fed’s autonomy tends to weigh on the US dollar, which in turn supports gold prices.

Weaker US Jobs Data Supports Rate Cut Expectations

Economic data has added further momentum to the rally. The latest US non-farm payrolls report showed job growth of just 50,000 in December, well below market expectations. Although the unemployment rate edged down slightly, the data reinforced signs of a cooling labour market.

This has strengthened investor expectations that the Federal Reserve may ease monetary policy further in 2026. Lower interest rates typically benefit gold, as the metal does not offer a yield and becomes more attractive when borrowing costs fall.

Silver and Other Metals Also Surge

The rally was not limited to gold. Other precious and industrial metals posted strong gains:

• Silver jumped more than 5% to a new record above $84 per ounce
• Platinum rose around 4%, trading close to recent all-time highs
• Copper prices on the London Metal Exchange climbed towards record levels

Silver’s move reflects both safe-haven demand and strong industrial usage, while copper continues to be supported by long-term expectations around electrification and infrastructure investment.

What This Means for Investors

The sharp move higher in gold and silver highlights how quickly markets can react to geopolitical shocks and policy uncertainty. With tensions in the Middle East, political risks in the US and signs of slowing economic growth, precious metals are likely to remain in focus.

While prices may remain volatile, the current environment underscores gold’s role as a hedge against uncertainty. For investors, the rally also brings renewed attention to mining stocks, ETFs and broader commodity exposure.

Outlook: Volatility Likely to Persist

With global risks showing little sign of easing, demand for safe-haven assets could remain elevated. Future moves in gold prices are likely to depend on developments in Iran, US political stability and the direction of Federal Reserve policy.

As markets navigate an increasingly uncertain backdrop, gold’s record-breaking run reflects a growing need for protection in global portfolios.

Sources: (Investing.com, Reuters.com)