Gold surged to a record above $4,600 an ounce on Monday as investors rushed into safe haven assets amid rising policy uncertainty and geopolitical tensions.
The rally was fueled by news that federal prosecutors are examining a $2.5 billion renovation of the Federal Reserve’s headquarters and Fed Chair Jerome Powell’s testimony to Congress.
Powell said the probe follows long standing pressure from President Donald Trump, who has repeatedly urged faster interest rate cuts.
BREAKING: Gold prices surge above a record $4,600/oz and Silver prices surge above a record $84/oz amid elevated levels of uncertainty.
— The Kobeissi Letter (@KobeissiLetter) January 12, 2026
Asset owners are winning. pic.twitter.com/StEDEgEUAj
Analysts say any leadership change at the Fed could accelerate rate reductions, a development that typically boosts gold prices.
Lower rate expectations were reinforced by signs of a cooling U.S. labor market. At the same time, renewed tensions involving Iran and recent U.S. military action in Venezuela added to global uncertainty, according to LSEG data.
Banks say gold continues to benefit from a weaker dollar, fiscal deficits, and strong central bank demand. HSBC projects prices could approach $5,000 in 2026.
Also read:
TIPP Staff
