By Micah Jonah
January 12, 2026
Gold prices surged to an all time high above 4600 dollars per ounce on Monday as investors rushed into safe haven assets amid deepening uncertainty over political pressure on the United States Federal Reserve.
Spot gold climbed more than two percent to trade above 4620 dollars per ounce after touching a record intraday peak, while U.S. gold futures also posted strong gains. Silver followed the rally, hitting a fresh record high above 85 dollars per ounce as demand for precious metals intensified.
Market anxiety has been fueled by reports that the Trump administration is threatening Federal Reserve Chair Jerome Powell with a possible criminal indictment over comments related to a building renovation project. Powell has described the move as a pretext aimed at exerting control over monetary policy, particularly interest rate decisions.
Analysts say the growing clash between the White House and the central bank has reinforced gold’s appeal as a store of value during periods of political and economic instability. Elevated uncertainty continues to support the metal, with analysts noting that new risk factors are emerging almost weekly.
Gold’s rally builds on an already historic run. The metal gained more than 64 percent last year, marking its strongest annual performance since 1979. Silver outperformed even further, recording its best year on record with gains exceeding 140 percent.
Expectations of further interest rate cuts have also supported the surge. Although the Federal Reserve is widely expected to hold rates steady at its late January meeting, markets are still pricing in additional cuts later in the year, reducing the opportunity cost of holding non yielding assets such as gold.
Geopolitical tensions have added to investor caution. Concerns over unrest in Iran, shifting U.S. foreign policy signals, and broader global instability have combined to push investors toward traditional safe havens.
Other precious metals joined the rally, with platinum and palladium both posting strong gains as the broader metals complex benefited from rising risk aversion across global markets.
With political pressure on the Fed unresolved and geopolitical risks mounting, analysts believe the conditions underpinning the gold rally are likely to persist in the near term.
