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Gold prices surged to a new all-time high in Asian trading on Monday, as a potent mix of geopolitical turmoil, political uncertainty in Washington, and softer U.S. labor data sent investors rushing into safe-haven assets.
Spot gold climbed as much as 2% to a record peak of $4,601.17 an ounce, before easing slightly to trade 1.4% higher at $4,574.85 by 01:59 ET 06:59 GMT. U.S. Gold Futures advanced as much as 2.5% to $4,612.04 an ounce.
The rally extended a powerful move from last week, when gold gained more than 4%, largely driven by haven demand after tensions erupted between the United States and Venezuela. Momentum accelerated further on Monday as fresh risks emerged across both geopolitical and political fronts.
Other precious and industrial metals also posted strong gains. Silver surged to a new record high, while platinum and copper hovered near their respective peaks, underscoring the breadth of the move across the metals complex.
Iran Unrest Ignites Haven Demand
Safe-haven buying was fueled by deepening turmoil in Iran, where anti-government protests have reportedly left more than 500 people dead. The unrest intensified after Tehran warned it could target U.S. military bases if President Donald Trump intervenes on behalf of protesters, raising fears of a wider regional conflict in the Middle East.
Markets remain acutely sensitive to any escalation involving Iran, a key geopolitical flashpoint and major energy producer. The risk of confrontation has amplified demand for assets perceived as stores of value during periods of instability, with gold once again taking center stage.
Political Pressure on the Fed Weighs on the Dollar
Gold’s rally was further reinforced by mounting political uncertainty in Washington. The U.S. Department of Justice has threatened the Federal Reserve with a possible criminal indictment related to testimony over a renovation project at the central bank’s headquarters.
Federal Reserve Chair Jerome Powell confirmed that the Fed has been served with grand jury subpoenas, a development that unsettled financial markets and reignited concerns over the independence of the central bank.
These developments pressured the U.S. dollar, making gold cheaper for holders of other currencies and adding momentum to the metal’s advance.
Weak Jobs Data Strengthens Rate Cut Bets
Economic data also played a key role in lifting bullion. On Friday, U.S. government figures showed nonfarm payrolls rose by just 50,000 jobs in December, missing expectations for a 66,000 increase. Although the unemployment rate edged down to 4.4%, below forecasts of 4.5%, the headline miss reinforced signs of a cooling labor market.
The softer jobs data strengthened expectations that the Federal Reserve may pursue further monetary easing in 2026. Lower interest rates tend to favor gold, which does not offer a yield and becomes more attractive when real returns on cash and bonds decline.
Metal Markets Rally Across the Board
The surge in gold spilled over into the broader metals market. Silver jumped more than 5% to hit a new record high of $84.58 an ounce. Platinum advanced 4% to $2,382.4 an ounce, moving closer to the peaks reached last month.
Copper prices also remained buoyant. Benchmark Copper Futures on the London Metal Exchange rose 1.5% to $13,194.25 a ton, hovering near last week’s record high of $13,390. U.S. Copper Futures climbed 2% to $6.01 a pound, just shy of their all-time high of $6.11.
With geopolitical risks mounting, confidence in central bank stability under strain, and economic data pointing to a softer U.S. labor market, gold’s role as a hedge against uncertainty is once again firmly in focus.
