Gold, Silver Hit Records Amid Powell Probe, Iran Tensions

Spot gold jumped 1.7% to $4,584.74 per ounce, hitting a record high of $4,600.33 earlier. US gold futures for February delivery added 2.1% to $4,595.30.

Tim Waterer, KCM Trade's chief market analyst, attributed the surge to events in Iran, potential US involvement, and the criminal probe into Fed Chair Powell, which caused US futures to turn lower and signaled a run higher for gold. Unrest in Iran has killed over 500 people, with Tehran threatening US military bases if President Donald Trump strikes the country.

Trump's international actions also include ousting Venezuelan President Nicolas Maduro and discussing annexing Greenland. Powell stated the Trump administration threatened him with a criminal indictment over Congressional testimony, which Powell called a "pretext" to pressure the Federal Reserve into lowering rates.

Goldman Sachs pushed back its forecast for Fed rate cuts, now expecting two 25-basis-point reductions in June and September 2026, instead of March and June. ANZ commodity strategist Soni Kumari expects silver prices to push towards $90/oz if current conditions persist, citing policy uncertainty and new restrictions from China.

Spot silver rose 5.1% to $84.06 per ounce, hitting an all-time high of $84.60. Platinum climbed 3.3% to $2,348.74, after a record high of $2,478.50 on December 29.

Palladium gained 2.7% to $1,864.19.