Gold Breaks Through $4,600 on Fed Concerns, Haven Boost

2026-01-13

Gold prices climbed to a record high, breaking above $4,600 a troy ounce as a criminal probe into Federal Reserve Chair Jerome Powell revived concerns over the central bank's independence, while protests in Iran boosted demand for safe-haven assets.

In midmorning European trading Monday, futures in New York rose 2.2% to $4,600.50 an ounce after touching an intraday high of $4,612.70. Silver surged 6.1% to $84.22 an ounce, having hit a record high of $84.69 earlier in the session.

U.S. prosecutors launched a criminal investigation into Powell over his testimony in summer about the Fed's building renovation project, pushing the dollar lower. The dollar index--which measures the greenback against a basket of other major currencies--was down 0.4% to 98.75.

"The USD index recorded its worst fall in three weeks due to fears that the White House could undermine the Fed's independence, filling the [Federal Open Market Committee] with very dovish members," Alex Kuptsikevich, chief market analyst at brokerage FxPro, said. "This risk stands in striking contrast with the current expectations of just two cuts by the end of 2026."

Gold is increasingly being treated as an alternative to fiat currencies--government-issued money like the dollar or the euro--with rising public debt and perceived pressure on the U.S. central bank driving interest in so-called debasement trading, according to market watchers.

Bullion's appeal has also been supported by rising geopolitical uncertainty as the U.S. capture of Venezuelan leader Nicolas Maduro and continuing protests in Iran reinforce the precious metal's haven status. According to U.S. officials, President Trump is scheduled to be briefed Tuesday on options to respond to Tehran, including sanctions, cyber weapons, and military strikes.

The latest gains build on a strong performance last year, underpinned by interest-rate cuts in the U.S., central-bank buying and strong inflows into exchange-traded funds. Investors are now watching coming U.S. economic data and policy signals for clues on whether the rally can be sustained.