Gold prices surged to new all-time highs this week, repeatedly crossing $4,600 per ounce and setting a record near midweek. The rally began Sunday night and continued into Monday morning after the Federal Reserve announced its officials were under investigation by the Department of Justice.
Risk-off sentiment remained firm through Wednesday, supporting gold despite a softer core CPI print and stronger retail sales data. Spot prices made multiple trips above $4,600, culminating in a new high of $4,638 on Wednesday.
Investors focused on escalating rhetoric from Washington about potential military intervention in Iran and discussions on acquiring Greenland as U.S. territory. Uncertainty over market stability and geopolitical tensions bolstered gold as a safe-haven asset.
A resurgent U.S. dollar in the latter half of the week pressured gold, driving a pullback from the highs and refocusing the battle around $4,600. The dollar's strength was attributed partly to better-than-expected U.S. economic data.
On Friday, as the U.S. walked back suggestions of military intervention in Iran, investors loosened their grip on safety plays. Gold prices dropped sharply by over $50 per ounce mid-morning but rebounded to $4,590 within an hour.
Spot and futures prices remain near record levels. The metal has shown attraction and resistance at $4,600, with buyers appearing hesitant to push higher from current levels.