Stocks Market
Gold Surges Past $4,590 an Ounce, Setting New All‑Time High Amid Fed Turmoil
Gold prices jumped over 2 % on Monday, pushing the metal above the $4,590 per ounce mark and establishing an all‑time high. The rally was fueled by growing doubts about the Federal Reserve’s independence, heightened geopolitical tensions involving the United States, Iran and Israel, and fresh expectations of further U.S. interest‑rate cuts after softer‑than‑expected job data. Investors are now focusing on upcoming U.S. inflation figures, which could shape the Fed’s policy path for the rest of the year.
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Record‑Breaking Gold Price
On Monday, the spot price of gold surged past $4,590 per ounce, a rise of more than 2 % that set a fresh all‑time high. The jump reflects a classic flight‑to‑safety as investors seek refuge from growing market uncertainty.
Fed Independence Under Scrutiny
Fed Chair Jerome Powell disclosed on Sunday that he had been threatened with criminal prosecution after his June testimony before the Senate. Powell dismissed the threat as a political pressure tactic by former President Trump, who is alleged to have pushed the central bank to lower rates.
Geopolitical Flashpoints
- The speaker of Iran’s Parliament warned the United States and Israel against any intervention after President Trump allegedly threatened to strike Iran’s central bank amid nationwide protests that have cost hundreds of lives.
- These developments have amplified safe‑haven demand for gold.
U.S. Rate‑Cut Outlook
Last Friday, U.S. employment data for December showed a sharper‑than‑expected slowdown, fuelling expectations of two more Fed rate cuts this year. Nonetheless, most analysts believe the Fed will keep rates unchanged through the end of the month.
What’s Next for the Markets?
All eyes are now on this week’s U.S. inflation report, which should provide fresh clues about the Fed’s monetary‑policy trajectory. A higher‑than‑expected inflation reading could delay further cuts, while a softer number might accelerate them.