Gold hits record high after Fed subpoenas and Iran unrest

The Justice Department served grand jury subpoenas connected to Fed Chair Jerome Powell’s June testimony, and gold rose to around $4,585 an ounce amid elevated geopolitical tensions and rate-cut expectations.

Gold rose to a record high as the Federal Reserve disclosed it had been served grand jury subpoenas tied to Fed Chair Jerome Powell’s June congressional testimony. The subpoenas were announced by Powell and described as coming from the U.S. Justice Department. At the same time, intensifying protests in Iran kept geopolitical tensions elevated and supported demand for safe-haven assets. Markets were also pricing in expectations of additional U.S. interest-rate cuts after recent jobs data. Key facts: - The Fed announced that grand jury subpoenas from the Justice Department were served relating to Powell’s June testimony on Fed headquarters renovations. - Gold traded near $4,585.39 an ounce, reaching record levels in Asian trading hours. - Intensifying protests in Iran were reported as contributing to safe-haven demand for precious metals. - Markets continued to price in additional U.S. rate cuts following a jobs report that showed slower-than-expected job growth. Summary: Gold’s rise reflects a combination of a legal development involving the Federal Reserve, elevated geopolitical tensions, and expectations for looser U.S. monetary policy. Undetermined at this time.