On Monday, global gold prices for the first time in history surpassed the psychological mark of $4,600 per ounce. The rapid increase in the value of precious metals was provoked by unprecedented political pressure on the US Federal Reserve and the escalation of the situation in the Middle East. This was reported by Reuters, writes UNN.
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The main driver of the price increase was the announcement by Fed Chairman Jerome Powell that he had received subpoenas from the Department of Justice. The investigation, which is linked to a personal conflict between Powell and President Donald Trump over interest rates, caused panic in financial markets.
Investors view gold as the last safe haven as US institutional stability is under threat
Against the backdrop of this news, US stock futures went down, giving a "green light" for a further increase in the value of banking metals.
Geopolitical instability: Iran and US "show of force"
An additional factor in the price increase was the events in Iran, where the number of casualties during the protests exceeded 500 people. Tehran officially threatened attacks on US military bases in response to Donald Trump's statements about his readiness to intervene in the conflict on the side of the rebels.
The situation is fueled by Trump's active foreign policy, which includes the recent removal of the Venezuelan president and discussions about the purchase of Greenland. Against the backdrop of such large-scale geopolitical shifts, silver also updated its highs, demonstrating stable demand for protective assets.