Gold prices rose more than 1% to above $4,570 per ounce on Monday, reaching a record high on heightened geopolitical risks and concerns over the Federal Reserve’s independence. Iran’s parliament speaker on Sunday warned the US and Israel against any intervention after President Trump threatened strikes amid widespread protests in Iran that have reportedly killed hundreds of people. Meanwhile, Fed Chair Jerome Powell revealed that he was threatened with criminal charges over his testimony before the Senate last June, criticizing the move as part of Trump’s pressure campaign on the bank to lower rates. Additional support came from expectations of more US interest rate cuts after Friday’s data showed December job growth slowed more than forecast. Markets are now focused on this week’s US inflation report for further clues on the Fed’s rate path. Traders are currently pricing in two rate reductions this year, though the Fed is widely expected to keep rates unchanged later this month.
