Gold futures opened at $4,594.30 per troy ounce on Wednesday, marking a 0.1% decline from Tuesday's close of $4,599.10. Shortly after opening, the price surged 1.2% to a new record high of $4,647.60.
Market observers attributed the rally to growing concerns about political pressure on the Federal Reserve's interest-rate decisions. These concerns intensified after the Trump administration subpoenaed Fed Chair Jerome Powell, threatening an indictment related to his testimony on building renovations. President Trump stated he was not involved in the investigation, but the move is seen as part of ongoing efforts to influence rate cuts.
On Tuesday, a coalition of ten central bank and financial institution leaders released a joint statement backing Powell. "The independence of central banks is a cornerstone of price, financial, and economic stability in the interest of the citizens we serve," the statement read. Signatories included leaders from the European Central Bank, Bank of England, and central banks in Australia, Brazil, Canada, and South Korea.
Analysts noted that political interference in monetary policy could destabilize markets, increasing demand for gold as a safe-haven asset.
Wednesday's opening price was 0.1% lower than Tuesday's close. Compared to previous periods, the opening price showed a 3.2% increase from one week ago, a 7.4% rise from one month ago, and a 71.8% jump from one year ago. Gold's one-year gain as of December 29 was 74.5%.