Gold prices climbed to fresh record levels in Asian trading on Wednesday after milder-than-expected U.S. inflation data reinforced expectations that the Federal Reserve will begin cutting interest rates, while rising geopolitical tensions in Iran supported demand for safe-haven assets.
Spot gold advanced more than 1% to a new all-time high of $4,640.13 an ounce by 01:56 ET (06:56 GMT), topping the previous record of $4,634.33/oz set in the prior session. U.S. gold futures for March also gained 1%, reaching $4,643.10/oz.
Silver posted even stronger gains, jumping over 4% to a fresh record of $91.56/oz. The metal has been lifted by a combination of robust industrial demand and renewed investor appetite for safe havens. Platinum also moved sharply higher, rising as much as 4% to $2,444.21, close to the record highs seen last month.
Soft U.S. inflation and Iran unrest lift metals
U.S. consumer price index data released on Tuesday came in below market expectations. Core CPI rose 0.2% in December and 2.6% on a year-on-year basis, undershooting forecasts and strengthening the case for future interest rate cuts. Markets are now pricing in around two rate reductions in 2026.
“Two Fed rate cuts seem perfectly achievable with the risks skewed towards a third due to the cooling jobs story,” ING analysts said in a recent note.
Lower interest rates typically favour non-yielding assets such as gold by reducing their opportunity cost.
Geopolitical risks also remained elevated. Iran has been shaken by intensifying anti-government protests that have reportedly led to around 2,000 deaths, raising fears of broader instability across the Middle East.
The unrest has drawn warnings from U.S. President Donald Trump, who has cautioned about potential military action and threatened to impose a 25% tariff on countries doing business with Iran. Trump also urged demonstrators to increase pressure on Iran’s leadership, posting on social media that they should “take over your institutions” and that “help is on its way.”
Fed independence concerns add support
Additional support for gold came from renewed worries over the independence of the U.S. central bank after the Trump administration opened a criminal investigation involving Federal Reserve Chair Jerome Powell.
Although the move unsettled markets, central bank officials and senior banking executives publicly backed Powell, stressing the importance of protecting the Fed’s autonomy from political interference.
Elsewhere in metals markets, benchmark copper futures on the London Metal Exchange edged up 0.4% to $12,237.20 a tonne, while U.S. copper futures climbed 1.1% to $6.07 a pound. Palladium prices also rallied, rising as much as 4% to $1,911.23/oz.
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