Gold prices surged on Monday, climbing more than 2% to reach a record $4,621 per ounce, as investors sought safety amid rising geopolitical risks and concerns over the Federal Reserve’s independence.
The rally followed remarks by Fed Chair Jerome Powell, who revealed he had been threatened with criminal charges over his Senate testimony last June, describing the threats as part of former President Trump’s push for rate cuts. The disclosure heightened market worries about the Fed’s autonomy and the future path of U.S. interest rates.
Geopolitical tensions added further support to the precious metal. Iran’s parliament speaker warned the United States and Israel against intervention following President Trump’s threats of strikes amid ongoing protests in the country, which have reportedly left hundreds dead.
Expectations of additional U.S. rate cuts also underpinned demand for gold. Friday’s jobs report showed December employment growth slowed more than forecast, leading traders to price in the possibility of two rate reductions this year, even as the Fed is widely expected to hold rates steady later this month. Market attention now turns to the upcoming U.S. inflation report for further guidance on monetary policy.
Gold’s price has risen 7.3% over the past month and is up 73% compared to the same time last year, reflecting strong demand for safe-haven assets amid economic and geopolitical uncertainty. Analysts say that gold’s climb demonstrates continued investor caution, with central bank policies and global tensions likely to keep the metal in focus in the coming weeks.
