Gold and silver futures surged to fresh peaks in domestic and international markets on Monday (January 12, 2026), after investors flocked towards safe-haven assets amid rising geopolitical tensions, as well as the U.S. Federal Reserve and its chair facing a probe.

Federal Reserve Chair Jerome Powell said, “The Department of Justice has served the central bank with subpoenas and threatened it with a criminal indictment over his June testimony about the Fed’s $2.5-billion renovation of two office buildings, a project that President Donald Trump criticised as excessive.”

On the Multi Commodity Exchange (MCX), gold futures for February delivery jumped by ₹2,431, or 1.8%, to hit a record of ₹1,41,250 per 10 grams.

The yellow metal has climbed by ₹3,058, or 2.25%, over the past week. Silver futures also rallied, with the March contract surging by ₹11,271, or 4.46%, to reach a lifetime high of ₹2,63,996 per kilogram. The white metal zoomed by ₹16,409, or 6.94%, last week.

In the global markets, gold for February delivery on the Comex appreciated by $111.8, or 2.5%, to hit a fresh peak of $4,612.7 per ounce, while silver for the March contract soared by $4.56, or 5.8%, to touch a historic level of $83.90 per ounce.

According to market experts, the rally in gold and silver prices was driven by deepening unease surrounding the Federal Reserve after the U.S. Federal prosecutors launched a criminal investigation into Chair Powell over the Central bank’s renovation of its Washington headquarters.

The move came amid rising tensions between the White House and the Fed, an institution Mr. Trump has repeatedly criticised for not cutting interest rates as sharply as he prefers.

Analysts said the probe has intensified concerns over the Fed’s independence, raising doubts about the stability of U.S. monetary policy and fuelling a rush into safe-haven assets such as gold and silver.

The dollar index, which measures the strength of the greenback against a basket of six currencies, was trading lower at 99.03, lending support to the bullion prices in the global markets.

Adding to the uncertainty, President Trump is considering military action against Iran following violent anti-government protests, saying Tehran had crossed a “red line,” analysts said.

Meanwhile, the United Nations has called an emergency meeting after Russia allegedly deployed a new ballistic missile in a large-scale strike on Ukraine.

These developments have combined to fuel uncertainty across global markets, weakening the dollar and pushing investors towards safe-haven assets.