Gold broke through $4,600/ounce for the first time on Monday, while silver also hit a record high, as investors snapped up safe-haven assets amid heightened geopolitical uncertainties and a criminal probe into Federal Reserve Chair Jerome Powell.
Spot gold jumped 1.7% to $4,584.74 per ounce by 0752 GMT. Bullion hit a record high of $4,600.33 earlier in the day.
U.S. gold futures for February delivery added 2.1% to $4,595.30.
"So, between events in Iran, and potential U.S. involvement, and the (Fed) chair being the focus of a criminal probe... U.S. futures turned lower on the Powell news, which was a green light for gold to take a run higher," said Tim Waterer, KCM Trade's chief market analyst.
Unrest in Iran has killed more than 500 people, a rights group said on Sunday, as Tehran threatened to target U.S. military bases if President Donald Trump carries out his renewed threats to strike the country on behalf of protesters.
Iran's unrest comes as Trump flexes U.S. muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing annexing Greenland by force or by purchasing the island.
Powell said on Sunday the Trump administration had threatened him with a criminal indictment over Congressional testimony, an action the Fed Chair called a "pretext" to further pressure the central bank into lowering rates. This sent the dollar and U.S. equity futures lower.
Though Goldman Sachs pushed back its forecast for Fed rate cuts on Sunday, it is now expecting two 25-basis-point reductions in June and September 2026 instead of the earlier anticipated moves in March and June.
Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
"If things remain as they are, I think (silver) prices will be soon pushing towards $90/oz... while there is still policy uncertainty and now there are some restrictions from China of which we are (yet) to see the impact," said ANZ commodity strategist Soni Kumari.
Spot silver rose 5.1% to $84.06 per ounce after hitting an all-time high of $84.60 earlier in the day.
Spot platinum climbed 3.3% to $2,348.74 per ounce after scaling a record high of $2,478.50 on December 29.
Palladium gained 2.7% to $1,864.19 per ounce. - Reuters
