Gold surged past $4,600 an ounce for the first time on Monday, driven by heightened safe‑haven demand, expectations of US Federal Reserve rate cuts and geopolitical uncertainty, including unrest in Iran and escalating international tensions. | Photo Credit: Hiba Kola/Reuters
Gold broke through $4,600/ounce for the first time on Monday, while silver also jumped to an all-time high, bolstered by geopolitical and economic uncertainties and growing bets of US interest rate cuts.
FUNDAMENTALS
* Spot gold was up 1.5% at $4,478.79 per ounce, as of 0127 GMT. Bullion hit a record high of $4,600.33 earlier in the session.
* US gold futures for February delivery firmed 2% to $4,591.10.
* Unrest in Iran has killed more than 500 people, a rights group said on Sunday, as Tehran threatened to target US military bases if President Donald Trump carries out his renewed threats to strike the country on behalf of protesters.
* Iran’s unrest comes as Trump flexes US muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing acquiring Greenland by purchase or force.
* US employment growth slowed more than expected in December, data showed on Friday, amid job losses in the construction, retail and manufacturing sectors.
* However, a decline in the unemployment rate suggested the labor market was not rapidly deteriorating.
* Investors currently expect at least two Federal Reserve rate cuts this year. A softer job market makes rate cuts more likely.
* Fed Chair Jerome Powell said on Sunday the Trump administration had threatened him with a criminal indictment and served grand jury subpoenas over Congressional testimony he gave last summer regarding a Fed building renovation project, an action Powell called a “pretext” aimed at putting further pressure on the central bank to lower rates.
* Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
* Gold prices could rise to $5,000 an ounce in the first half of 2026 on rising geopolitical risks and debt, HSBC said.
* Spot silver rose 4.4% to $83.50 per ounce after hitting an all-time high of $83.96 earlier in the day.
* Spot platinum added 2.9% to $2,338.54 per ounce after scaling a record peak of $2,478.50 on December 29.
* Palladium gained 4.2% to $1,892.18 per ounce
Published on January 12, 2026