Gold Holds Near Record as Softer U.S. CPI and Iran Turmoil Drive Safe-Haven Demand

Key Moments

Precious Metals Rally Near Record Levels

Gold prices advanced in Asian trading on Wednesday, holding close to the record levels reached in the prior session. The move came as U.S. inflation data reinforced expectations for interest rate reductions by the Federal Reserve and as escalating tensions in Iran continued to bolster safe-haven flows.

Spot gold rose 0.7% to $4,623.55 an ounce by 22:19 ET (03:19 GMT), after touching an all-time high of $4,634.33/oz on Tuesday. U.S. Gold Futures for March increased 0.6% to $4,627.10/oz.

Silver extended its recent outperformance, surging 3% to a fresh record high of $90.04/oz on Wednesday. The metal has drawn support from both strong industrial demand and safe-haven interest. Platinum also traded firmly higher, climbing 4% to $2,415.21 and approaching record levels seen last month.

Gold prices rose as geopolitical and dollar risks outweighed steady US CPI data. Despite the correction, XAUUSD stays above diverging EMAs The price stays near recent highs above EMA21, suggesting an uptrend. Clearing above 4635 could lead XAUUSD toward 4720. pic.twitter.com/7XHMv6n3va

— Exness (@EXNESS) January 14, 2026

Cooling U.S. CPI Strengthens Rate Cut Bets

Investor sentiment toward gold was buoyed by U.S. consumer price index figures released on Tuesday that came in below market expectations. Core CPI increased 0.2% in December and 2.6% year-on-year, undercutting forecasts and reinforcing the case for future policy easing by the Federal Reserve.

Markets now anticipate roughly two rate cuts in 2026. Lower interest rates typically enhance the appeal of non-yielding assets such as gold by reducing their relative opportunity cost.

“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said in a recent note.

Iran Unrest Amplifies Safe-Haven Flows

Geopolitical developments also played a central role in supporting precious metals. Iran has been experiencing intensifying anti-government protests that have reportedly resulted in around 2,000 deaths, heightening concerns over broader instability across the Middle East.

The situation has prompted a forceful response from U.S. President Donald Trump, who has warned of potential military action and threatened to impose a 25% tariff on countries conducting business with Iran.

Trump also urged protesters to escalate pressure on the Iranian leadership, posting on social media that they should “take over your institutions” and that “help is on its way.”

Fed Independence Concerns Add Another Support Pillar

Additional support for gold emerged from growing worries about the independence of the Federal Reserve. These concerns intensified after the Trump administration initiated a criminal investigation involving Federal Reserve Chair Jerome Powell.

The development unsettled parts of the market, but central bank leaders and major bank executives publicly rallied behind Powell, emphasizing the importance of maintaining the Fed’s autonomy in the face of political pressure.

Together with expectations for lower rates and mounting geopolitical risks, these institutional concerns have contributed to a market backdrop that remains favorable for safe-haven assets such as gold, silver, and platinum.