Gold prices surged to unprecedented levels on Monday, lifted by escalating political turmoil in Iran, rising pressure on the U.S. Federal Reserve, and softer-than-expected U.S. labor market data, all of which fueled demand for safe-haven assets.
At 08:55 ET (13:55 GMT), spot gold was up 2.4% at $4,618.85 an ounce, after touching an all-time high of $4,620.33 earlier in the session. U.S. gold futures climbed as much as 2.8% to $4,628.90 an ounce.
The rally extended across the metals complex, with silver reaching a new record high, while platinum and copper traded close to their respective peaks.
Gold gained more than 4% last week, driven largely by haven flows following renewed tensions between the United States and Venezuela.
Iran protests intensify haven demand
Investor anxiety has been amplified by deepening unrest in Iran, where anti-government protests have reportedly resulted in more than 500 deaths.
Tensions escalated further after Iranian officials warned that U.S. military bases in the region could be targeted if President Donald Trump intervenes in support of demonstrators, raising concerns about a wider regional conflict.
“We are looking at it very seriously. The military is looking at it, and we’re looking at some very strong options,” Trump told reporters on Sunday.
Fed subpoena threat adds to uncertainty
Gold also found support from political developments in Washington after the U.S. Department of Justice threatened the Federal Reserve with a potential criminal indictment.
Fed Chair Jerome Powell said the central bank has received grand jury subpoenas related to his Senate testimony, a development that rattled markets and reignited concerns about the Fed’s independence.
The uncertainty weighed on the U.S. dollar, enhancing gold’s appeal by making it cheaper for buyers using other currencies and accelerating the metal’s upward momentum.
Economic data added another tailwind. On Friday, U.S. government figures showed nonfarm payrolls rose by 50,000 in December, well below expectations for a 66,000 increase. The unemployment rate slipped to 4.4%, compared with forecasts of 4.5%.
The weaker employment data reinforced signals of a cooling labor market and strengthened expectations that the Federal Reserve could deliver further monetary easing in 2026.
Silver hits record; base metals remain firm
Silver prices jumped more than 7% to a new all-time high of $85.15 an ounce. Platinum rose 3.6% to $2,379.20 an ounce, hovering near record levels reached last month.
Copper prices also remained elevated. Benchmark London Metal Exchange copper futures advanced 2.3% to $13,282.20 per tonne, close to last week’s record peak of $13,390.00. U.S. copper futures gained 2.5% to $6.0505 per pound, just shy of their all-time high of $6.11 per pound.