Gold reached a record $2,438 per ounce in early trading on January 12, 2026, fueled by escalating geopolitical tensions and mounting skepticism over the Federal Reserve’s autonomy. Investor demand from Iran has contributed significantly to the rally.
- Gold climbed to a record $2,438 per ounce on January 12, 2026.
- Iranian gold purchases rose to 37 tons in December 2025, up 41% YoY.
- U.S. dollar declined 1.8% against the euro and 2.3% against the yen.
- Federal Reserve independence is under scrutiny due to pending congressional reforms.
- Inflation stood at 3.2% annually, but policy uncertainty drove market moves.
- Two bills targeting Fed transparency have moved past committee stage in Congress.
Commodity prices surged as gold hit a new benchmark of $2,438 per ounce, marking a 12% increase year-to-date and surpassing its previous peak set in 2022. The rally was driven by renewed concerns about potential legislative interventions that could compromise the Federal Reserve's independence, particularly following proposed congressional amendments aimed at increasing oversight of monetary policy decisions. Iranian investors and central banks have been actively accumulating physical gold, with reported purchases totaling 37 tons in December 2025 alone—up 41% from the same month in 2024. This spike in demand reflects both hedging against currency volatility and a strategic shift toward non-dollar-denominated assets amid ongoing sanctions and regional instability. The U.S. dollar weakened against major currencies during the same period, falling 1.8% against the euro and 2.3% against the yen, further bolstering gold’s appeal as a store of value. Analysts note that while inflation remains contained at 3.2% annually, the perceived risk of political interference in monetary policy has created a flight to safety among institutional and retail investors alike. Market participants are now closely monitoring developments in Washington, where two bipartisan bills have advanced through subcommittee stages—one proposing a Fed accountability review every five years, the other calling for public disclosure of interest rate voting records. These measures, while not yet law, have already influenced investor sentiment.