Gold and silver surged to historic highs on Wednesday as geopolitical tensions in Iran, combined with uncertainty over U.S. Federal Reserve policy, drove investors toward traditional safe-haven assets. The price of spot gold reached a record $4,639.48 per ounce, while silver crossed the $90 mark for the first time, hitting $91.53 per ounce earlier in the session.

By 1001 GMT, spot gold traded at $4,627.72 per ounce, with U.S. gold futures for February delivery climbing 0.8% to $4,636. Spot silver, after peaking above $91, settled at $90.46 per ounce, reflecting a nearly 27% gain in just the first two weeks of 2026.

Factors Driving the Precious Metals Rally

Market analysts cite a combination of geopolitical instability, concerns over Federal Reserve independence, and softer U.S. inflation data as key drivers behind the rally.

• Geopolitical tensions in Iran: Ongoing protests in Iran, with a reported death toll of 2,571, have raised fears of potential U.S. intervention. This uncertainty has increased demand for gold and silver as safe-haven investments.
• Federal Reserve uncertainty: In an unprecedented show of support, central bank leaders globally defended Fed Chair Jerome Powell after the Trump administration threatened him with a criminal indictment. Analysts say this political pressure may undermine confidence in U.S. assets like the dollar, further boosting bullion prices.
• Inflation and interest rate expectations: The U.S. core Consumer Price Index (CPI) rose 0.2% month-on-month and 2.6% year-on-year in December, suggesting inflation pressures are moderating. Investors are pricing in two interest rate cuts in 2026, which generally favors non-yielding metals such as gold and silver.

Jamie Dutta, Chief Market Analyst at Nemo.money, commented:

“Well-known haven characteristics amid heightened geopolitical risks, elevated fiscal uncertainty, and concerns about Fed independence are driving prices higher. Long-term targets are the big round numbers like $5,000 and $100 for gold and silver respectively.”

Precious Metals Market Performance

Other precious metals also saw strong gains:

• Platinum climbed 3.5% to $2,406.75 per ounce, after hitting a one-week high earlier in the session. Platinum reached a record $2,478.50 per ounce on December 29, 2025.
• Palladium edged up 0.1% to $1,840.19 per ounce.

Meanwhile, U.S. equities saw modest losses, with the Dow Jones Industrial Average falling 0.8% and the S&P 500 and Nasdaq declining fractionally, highlighting a shift in investor preference toward metals amid uncertainty.

Safe-Haven Outlook for 2026

Analysts predict that precious metals will continue to benefit from ongoing geopolitical tensions and central bank policy uncertainties:

• Investors are closely watching the Iran protests and potential U.S. responses.
• Market focus remains on the Fed’s rate decisions and potential fiscal or monetary interventions.
• The rapid gains in gold and silver indicate strong demand for tangible assets as hedges against economic and political volatility.

Dutta added:

“Given current conditions, the momentum for gold and silver is likely to remain strong in 2026, with key psychological targets at $5,000 for gold and $100 for silver.”