Emre Yumlu 
Growing uncertainty across global markets has reignited demand for safe-haven assets, pushing gold to unprecedented levels. Political pressure on U.S. Federal Reserve Chair Jerome Powell, combined with escalating geopolitical risks in the Middle East, has significantly altered investor sentiment. As a result, gold prices surged past a historic threshold on Monday, climbing above the 4,600 dollar per ounce mark for the first time.
Gold Breaks Through a Historic Price Barrier
Spot gold posted a strong intraday rally, rising 1.3% to trade around 4,566.80 dollars per ounce. Earlier in the session, prices briefly touched 4,600.33 dollars per ounce, marking a new all-time high. The momentum was equally visible in the futures market, where February U.S. gold contracts gained 1.8% to reach 4,579.10 dollars. This decisive move higher reflects a clear shift toward risk-off positioning among global investors.
Powell Investigation Shakes Market Confidence
Market volatility intensified after reports surrounding potential legal pressure on Federal Reserve Chair Jerome Powell. Powell stated that he could face criminal charges linked to testimony given during the Trump administration era, characterizing the situation as an attempt to apply political leverage over monetary policy decisions, particularly regarding interest rate cuts. Following these developments, the U.S. dollar weakened and equity futures moved lower, while gold benefited from the deterioration in confidence toward traditional risk assets.
Rising Iran Tensions Fuel Safe-Haven Demand
Geopolitical risks further amplified demand for precious metals. According to human rights organizations, ongoing protests in Iran have resulted in more than 500 fatalities. In response to growing unrest, Iranian officials warned that U.S. military bases could become targets should Washington intervene. These statements heightened global uncertainty and reinforced the appeal of gold and silver as defensive assets during periods of political instability.
Silver and Platinum Group Metals Join the Rally
Gold’s breakout was accompanied by sharp gains across the broader precious metals complex. Spot silver surged to an intraday record of 83.96 dollars per ounce before settling around 83.20 dollars, up 4.1% on the day. Platinum advanced 3.4% to 2,349.59 dollars per ounce, while palladium matched that gain, climbing to 1,877.96 dollars. The synchronized rally highlights broad-based demand across inflation-hedging and store-of-value assets.
Rate Cut Expectations Provide Structural Support
Investors are increasingly pricing in at least two Federal Reserve rate cuts within the year. Historically, non-yielding assets such as gold and silver perform well in lower-rate environments, particularly when macroeconomic and geopolitical risks remain elevated. Analysts note that central bank interest in precious metals could continue strengthening throughout 2026, providing a longer-term tailwind for the sector.
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