Gold prices jumped to a record high in Asian trading on Monday, as escalating unrest in Iran, mounting political pressure on the US Federal Reserve, and weaker US employment data fueled demand for safe-haven assets.

The yellow metal has risen more than 4% in the past week, largely due to safe-haven demand following escalating tensions between the US and Venezuela. Deadly protests in Iran boost safe-haven appeal

Demand for safe-haven assets has been fueled by deepening instability in Iran, where unrest related to anti-government protests has reportedly killed more than 500 people.

Tensions rose after Tehran warned it could strike U.S. military bases if President Donald Trump intervenes on behalf of the protesters, raising fears of a wider regional conflict.

"We're taking this very seriously. The military is looking into it, and we're considering some very strong options," Trump told reporters on Sunday.

The U.S. Department of Justice served subpoenas to the Federal Reserve

Gold also received support from political uncertainty in Washington after the U.S. Department of Justice threatened the Federal Reserve with possible criminal charges. Federal Reserve Chairman Jerome Powell announced that the central bank had been served with grand jury subpoenas related to his Senate testimony, unsettling markets and reigniting concerns about the central bank's independence.

These developments put pressure on the US dollar, making gold cheaper for holders of other currencies and fueling the rally.

Economic data also played a key role in boosting precious metals prices. On Friday, US government data showed that non-farm payrolls increased by 50,000 in December, missing expectations for a 66,000 increase, while the unemployment rate fell to 4.4%, below forecasts of 4.5%.

Weaker employment data reinforced signs of a cooling labor market and strengthened bets that the Federal Reserve could further ease monetary policy in 2026.