Gold price update for Monday, January 12: Gold surpasses $4,600 following Powell's subpoena

Gold Futures Reach New Heights

On Monday, gold futures (GC=F) began trading at $4,529.10 per troy ounce, marking a 0.6% increase from Friday’s close of $4,500.90. Shortly after the market opened, gold prices soared past $4,600, setting a new all-time high.

This surge followed an announcement from Federal Reserve Chair Jerome Powell, who revealed that the Justice Department had issued a subpoena to the central bank and was considering criminal charges. The investigation is linked to Powell’s recent testimony before the Senate Banking Committee regarding renovations at the Fed’s headquarters. President Trump has denied any involvement in the probe.

Tensions between President Trump and Chair Powell became public in 2025, as the president openly urged the Federal Reserve to cut interest rates. These events raised widespread concerns about the Fed’s independence in setting monetary policy, fueling a rise in gold prices and a weakening of the U.S. dollar over the past year.

Latest Gold Price Overview

Monday’s opening price for gold futures reflected a 0.6% uptick from the previous session. Here’s how gold’s opening price compares to previous periods:

• Compared to one week ago: up 3.2%
• Compared to one month ago: up 5.9%
• Compared to one year ago: up 68.6%

As of December 29, gold had gained 74.5% over the past year.

Understanding Gold Pricing

Gold is traded in several forms, resulting in different quoted prices. The two primary prices investors encounter are the spot price and the futures price.

Spot Price Explained

The spot price represents the current market value per ounce for raw, physical gold—often referred to as spot gold. Exchange-traded funds (ETFs) backed by physical gold typically mirror the spot price.

When purchasing gold coins, bullion, or jewelry, buyers pay more than the spot price due to an added markup known as the gold premium, which covers costs like refining, distribution, dealer expenses, and profit margins. Essentially, the spot price is akin to a wholesale rate, while the retail price includes this premium.

Gold Futures Contracts

Gold futures are standardized agreements to buy or sell gold at a predetermined price on a future date. These contracts are traded on exchanges and offer greater liquidity than physical gold. Settlement can occur either through a cash payment reflecting gains or losses, or by delivering the physical metal to the buyer.

Key Drivers of Gold Prices

The balance of supply and demand sets both spot and futures prices for gold. Several factors can influence this balance, including:

1. Global political developments
2. Purchasing activity by central banks
3. Inflation trends
4. Interest rate changes
5. Levels of gold mining output

Gold Price Trends

Whether you’re interested in short-term or long-term movements, the following chart illustrates gold’s consistent upward momentum over recent months and years.