Gold rose toward a new record high on Wednesday as in-line U.S. inflation data did little to dent expectations that the Federal Reserve will pause interest-rate cuts.
Ongoing geopolitical uncertainty as well as worries around Fed independence and trust in U.S. assets also added to safe-haven demand for the yellow metal.
Spot gold was up 1 percent at $4,632.54 an ounce after hitting a high of $4,640.13 earlier. U.S. gold futures were up 0.9 percent at $4,638.70.
The dollar index consolidated in a tiny range ahead of the release of delayed November U.S. retail sales and producer prices data later in the day.
Fed independence worries weighed on markets following reports that the Department of Justice had opened a criminal investigation into Federal Reserve Chair Jerome Powell.
On the geopolitical front, Iran’s government appears to be waging one of its deadliest crackdowns in more than a decade against protests that began over two weeks ago.
U.S. President Donald Trump ramped up rhetoric on Iran, threatening the country with military intervention, and asking Iranians to continue their nationwide protests, take over institutions and record the names of “killers and abusers”.
In a letter to the UN Security Council, Iran’s UN ambassador accused Trump of encouraging political destabilisation in his country and inciting violence.
Gold Scales New Record High On Fed Rate Cut Hopes
2026-01-14 09:52:28
