Gold edges past $4,600/oz as Powell-Trump rift stokes safe-haven demand

Gold broke through $4,600/ounce for the first time on Monday, while silver also hit a record high, as investors snapped up safe havens due to heightened geopolitical uncertainties and a criminal probe into Federal Reserve Chair Jerome Powell.

Spot gold jumped 1.3 percent to $4,566.80 per ounce by 0410 GMT. Bullion hit a record high of $4,600.33 earlier in the day.

US gold futures for February delivery firmed 1.8 percent to $4,579.10.

"So, between events in Iran, and potential US involvement, and the (Fed) chair being the focus of a criminal probe... US futures turned lower on the Powell news, which was a green light for gold to take a run higher," said Tim Waterer, KCM Trade's chief market analyst.

Unrest in Iran has killed more than 500 people, a rights group said on Sunday, as Tehran threatened to target US military bases if President Donald Trump carries out his renewed threats to strike the country on behalf of protesters.

Iran's unrest comes as Trump flexes US muscles internationally, having ousted Venezuelan President Nicolas Maduro, and discussing acquiring Greenland by purchase or force.

Powell said on Sunday the Trump administration had threatened him with a criminal indictment over Congressional testimony, an action Powell called a "pretext" aimed at putting further pressure on the central bank to lower rates. This sent the dollar and US equity futures lower.

Investors currently expect at least two Fed rate cuts this year.
Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.

"I expect that central bank appetite for gold and silver will continue to grow this year, with precious metals perceived as being a lower risk alternative to the dollar," Waterer said.