Gold has climbed to a record high as escalating tensions over Iran and growing concerns about the independence of the U.S Federal Reserve boosted demand for safe-haven assets.

The price of one industry-standard troy ounce of gold rose to nearly $4,600 early on Monday before easing back. It was last up about 1.5 per cent at $4,578 in early European trade.

The move extended gold’s gains this year to around 6 per cent.

The metal was among the strongest-performing asset classes last year, with prices jumping 65 per cent, the sharpest rise since 1979.

Silver posted even steeper gains in 2025, rising around 150 per cent.

On Monday, spot silver climbed about 4.5 per cent to $83.45 an ounce, leaving it just below its late-2025 record high.

Traders attributed the rally in precious metals primarily to the situation in Iran.

Experts also pointed to concerns over the independence of the U.S. Federal Reserve as an additional driver of gold gains.

The dispute between President Donald Trump and Federal Reserve chair Jerome Powell has intensified.

Mr Powell rejected allegations of criminal wrongdoing and the threat of an indictment as an attempt to influence the central bank’s work.

Mr Powell said the U.S Justice Department has issued subpoenas to the Fed over claims that he made false statements linked to a renovation of the central bank’s office buildings. 

He said the allegations were a pretext, adding that the real issue was whether the Fed could continue to set interest rates based on economic conditions rather than political pressure.

Precious metals are widely seen as safe havens during political uncertainty. Silver is also a key industrial metal used in AI, robotics, and energy technologies. 

(dpa/NAN)