Gold prices surged to record highs during Asian trading on Monday amid escalating unrest in Iran, growing political pressure on the Federal Reserve and weak US employment data, boosting demand for safe-haven assets.
Spot gold jumped about 2% to a historic high of $4,601.17 per troy ounce. Later, the gain eased to 1.5%, with spot trading at $4,574.01 an ounce. US gold futures rose 2.5% to $4,612.04 an ounce.
Over the past week, gold gained more than 4%, supported by steady safe-haven demand amid high tensions between the US and Venezuela.
Another bullish factor was social clashes in Iran. Reports say more than 500 people have been killed in anti-government protests, increasing investor fears of broader regional instability.
Tensions flared up further after Tehran warned of possible strikes on US military bases if President Donald Trump intervenes in support of protesters. Trump said on Sunday the situation is being taken “very seriously,” and the military is studying potential options.
Gold also received support from political uncertainty in the US after the Department of Justice served subpoenas on the Federal Reserve. Fed Chair Jerome Powell confirmed the central bank had received grand-jury subpoenas related to his Senate testimony, stoking market concerns and reigniting debate over the regulator’s independence.
These events put pressure on the US dollar, making gold more attractive for holders of other currencies and reinforcing the bullish momentum.
Economic data also helped drive the rally. On Friday, the nonfarm payrolls showed that the US public and private sectors added only 50,000 in December, missing expectations for a 66,000 increase. The unemployment rate fell to 4.4%, slightly below the 4.5% forecast.
The weak employment data confirmed signs of cooling in the labor market and bolstered expectations that the Federal Reserve may continue monetary easing into 2026, further supporting demand for gold.