New York, Jan 12, 2026, 10:26 EST — Regular session underway.
- Newmont jumps almost 4% after gold climbs past $4,600/oz to a new peak
- Gold-related stocks and bullion ETFs rise after Fed investigation rattles markets
- Investors now eye U.S. CPI data and the Fed meeting scheduled for Jan. 27-28 as the next critical hurdles
Newmont surged close to 4% Monday, following gold’s break above $4,600 an ounce as investors sought safer havens amid political unrest. (Reuters)
The move is significant because miners’ earnings can magnify shifts in bullion prices, while rate forecasts and the dollar can swing sharply when trust in institutions wavers. Spot gold — the price for immediate delivery — climbed 1.7% to $4,584.91 an ounce after hitting $4,620, and U.S. gold futures rose 2.1% to $4,596.70; silver reached $85.69 before retreating slightly. “Elevated uncertainty plays directly into the gold market,” said Michael Haigh, global head of commodities research at Societe Generale. (Reuters)
This time, the driver is the standoff surrounding Federal Reserve Chair Jerome Powell, which has pushed concerns about central bank independence into the spotlight. Gold, while yielding no interest, often attracts buyers when investors anticipate rate cuts or fret over the long-term stability of fiat currencies.
By mid-morning, the SPDR Gold Shares ETF climbed roughly 2.4%. Agnico Eagle advanced 3.8%, AngloGold Ashanti surged 6.2%, Kinross went up 5.2%, and Gold Fields soared 7.8%.
The dollar slipped, with the dollar index dropping 0.4% to 98.84. This came after Powell revealed the Fed had received subpoenas tied to his testimony about a renovation project, describing the move as a “pretext” aimed at pressuring interest rates. Marc Chandler, chief market strategist at Bannockburn Global Forex, said, “This just ended the dollar’s New Year bounce.” (Reuters)
Several investors pointed to the combination of a weaker dollar, stronger gold, and rising long-term yields as the market factoring in a fresh kind of policy risk. Damien Boey, portfolio manager at Wilson Asset Management, said, “These moves have been broadly consistent with the playbook for an attack on the Fed’s independence.” (Reuters)
Rate traders remain focused on how the latest developments will shape the Fed’s next moves. Fed funds futures, which price in expectations for the policy rate, show roughly a 95% probability the Fed will keep rates steady at its January meeting. Meanwhile, banks have begun pushing back their forecasts for rate cuts, Reuters reported. (Reuters)
Goldman Sachs lifted its price target on Newmont to $123.90 from $99.90, maintaining a Buy rating, MarketScreener reports. (MarketScreener)
But the trade moves quickly and shows no mercy. A hotter-than-expected inflation report can send Treasury yields and the dollar higher, hitting demand for gold, which doesn’t yield interest. That often hits miners even harder than bullion, as profit-taking kicks in.
Tuesday brings the U.S. consumer price index report for December, set for release at 8:30 a.m. ET. The Fed’s meeting on Jan. 27-28 will follow later in the month. Traders are focused on both events, along with any fresh developments in the Powell investigation, to gauge their impact on the dollar and rate forecasts. (Bureau of Labor Statistics)
