Gold smashes new record of $4,600 as Powell probe and global flashpoints ignite safe-haven rush
Gold soared to a new all-time high on Monday, breaching $4,600 per ounce as a convergence of geopolitical flare-ups and unprecedented political pressure on the Federal Reserve drove investors toward safe-haven assets.
Spot gold jumped 2% to set the fresh record, extending a blistering rally that has seen prices rise roughly 6% in the first weeks of 2026. The surge reflects deepening anxiety over both international stability and U.S. monetary policy independence.
Fed Investigation Adds Policy Uncertainty
A key catalyst is the criminal investigation into Fed Chair Jerome Powell over a $2.5 billion headquarters renovation and his related congressional testimony. Powell has stated the probe stems from President Donald Trump’s frustration with the Fed’s pace of interest-rate cuts. Analysts suggest Powell’s potential early departure could lead to a more dovish successor, accelerating rate cuts—a scenario historically bullish for gold, as lower rates reduce the opportunity cost of holding the non-yielding metal.
“Especially if it results in him stepping down… and is replaced by someone more in favor of rate cuts,” noted Morningstar’s Jon Mills.
Geopolitical Tensions Amplify Demand
Simultaneously, escalating tensions in Iran and the recent U.S. military operation in Venezuela have reinforced gold’s role as a crisis hedge. “They all add to the narrative of heightened geopolitical uncertainty,” said Standard Chartered strategist Rajat Bhattacharya.
Bank of Singapore’s Eli Lee highlighted that despite a swift resolution in Venezuela, such episodes underscore persistent global instability, which should continue supporting gold.
Structural and Macro Backdrop Remains Supportive
HSBC projected that momentum could push gold to $5,000 an ounce in the first half of 2026, citing safe-haven demand, a softening U.S. dollar, and mounting fiscal deficits worldwide. The bank also noted central banks are likely to remain steady buyers, albeit at a slower pace than the 2022-2024 peak, as they diversify reserves away from the dollar.
Gold’s record run follows an extraordinary 65% annual gain in 2025, its strongest performance in decades, signaling a profound shift in investor sentiment toward traditional hedges amid a fragmenting geopolitical and policy landscape.
