economy
January 12, 2026
Gold smashes new record of $4,600 as Powell probe and global flashpoints ignite safe-haven rush
Spot gold advanced higher to hit over $4,600 an ounce for the first time.
TL;DR
- Gold reached a fresh record high, rising over $4,600 an ounce, with prices up around 6% this year.
- An investigation into Federal Reserve Chairman Jerome Powell has introduced policy risk, with speculation that a change in leadership could lead to faster rate cuts.
- Lower interest rates typically support gold prices by reducing the opportunity cost of holding a non-yielding asset.
- Geopolitical tensions involving Iran and Venezuela have increased gold's appeal as a safe-haven asset.
- Analysts predict gold prices could reach $5,000 an ounce by the first half of 2026, driven by safe-haven demand, a weaker U.S. dollar, and policy uncertainty.
- Central banks are expected to continue buying gold to diversify away from the U.S. dollar.
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