Gold and silver prices surged sharply near midday trading, with both precious metals reaching fresh record highs as safe-haven demand strengthened across global markets. Rising risk aversion at the start of the week pushed investors toward hard assets as political, monetary, and geopolitical uncertainty intensified worldwide.
Gold and Silver Prices Rally as Safe-Haven Demand Accelerates
February gold futures climbed $124.80 to trade near $4,627.10 per ounce, while March silver futures surged $6.674 to approximately $86.025 per ounce. The sharp rally highlights growing investor concern as capital flows increasingly favor gold and silver prices during periods of elevated market stress.
Global Risk Aversion Drives Investors Toward Precious Metals
Market anxiety rose significantly amid mounting instability across financial and political systems. Investors continue to favor precious metals as reliable stores of value as uncertainty surrounding monetary policy, government oversight, and international relations deepens.
Federal Reserve Turmoil Sparks Market Volatility
Tensions surrounding the U.S. Federal Reserve escalated after reports confirmed that the Department of Justice issued grand jury subpoenas related to testimony by Federal Reserve Chair Jerome Powell. The investigation, tied to the Fed’s $2.5 billion office renovation project, has intensified scrutiny of the central bank and heightened concerns about political interference in monetary policy.
Powell responded over the weekend by firmly defending the Federal Reserve’s independence, characterizing the potential criminal charges as attempts to undermine the institution’s authority. President Donald Trump, meanwhile, stated in a separate interview that he was unaware of the investigation and denied any effort to influence interest rate decisions.
Iran Unrest Fuels Geopolitical Uncertainty and Metal Prices
Geopolitical risk further supported gold and silver prices as civil unrest in Iran continued to escalate. Protests, which began following a sharp collapse in the country’s currency, have evolved into the most significant challenge to Iran’s leadership in decades. Despite government claims of restored control, demonstrations reportedly continued across multiple regions.
Reports indicate hundreds of casualties and thousands of arrests amid widespread communication blackouts, complicating assessments of the situation on the ground. The ongoing instability has amplified global risk sentiment, driving further safe-haven demand for precious metals.
Broader Market Signals Support Gold and Silver Prices
Additional support for gold and silver came from a weaker U.S. dollar, which typically enhances the appeal of dollar-denominated commodities. At the same time, crude oil prices remained relatively steady near $59 per barrel, while the benchmark 10-year U.S. Treasury yield hovered around 4.18%, reinforcing the cautious tone across financial markets.
Gold and Silver Reinforce Their Role as Crisis-Hedge Assets
As uncertainty persists across political, monetary, and geopolitical fronts, gold and silver continue to benefit from strong investor demand. Their latest surge underscores their enduring role as essential safe-haven assets during periods of heightened global risk and financial instability.
