Spot Gold scaled a fresh all-time high of $4,600.33/oz. on Monday, as heightened geopolitical tensions and a criminal probe into Fed Chair Jerome Powell prompted investors to move into safe-haven assets.
Unrest in Iran has led to the deaths of over 500 people, according to a report by Reuters, as Tehran threatened to target US military facilities in case President Donald Trump carries out his threats to strike the Islamic country on behalf of protesters.
Federal Reserve Chair Jerome Powell said over the weekend he had been threatened by the Trump administration with a criminal charge over Congressional testimony. Powell said this was a “pretext” intended to mount more pressure on the US central bank to cut interest rates.
FOMC policy makers had signaled just one 25 bps rate cut for 2026, while investors continue to expect two or three rate cuts.
“So, between events in Iran, and potential U.S. involvement, and the (Fed) chair being the focus of a criminal probe… U.S. futures turned lower on the Powell news, which was a green light for gold to take a run higher,” KCM Trade’s chief market analyst Tim Waterer was quoted as saying by Reuters.
“I expect that central bank appetite for gold and silver will continue to grow this year, with precious metals perceived as being a lower risk alternative to the dollar.”
Spot Gold was last up 1.76% on the day to trade at $4,588.94 per troy ounce.
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