Gold prices climbed in Asian trading, nearing record highs touched the previous session. This surge was driven by softer U.S. CPI data, which reinforced expectations of Federal Reserve rate cuts in 2026. The Iranian unrest also boosted gold as a safe-haven asset, with prices rising 0.7% to $4,623.55 per ounce.

The CPI report showed a more modest increase than anticipated, with the core index rising 0.2% in December and 2.6% year-on-year. This data supports the market's anticipation of Fed rate cuts, with analysts at ING suggesting two to three cuts are likely. Lower rates typically benefit non-yielding assets like gold by reducing their opportunity cost.

Silver prices outperformed, surging 3% to a fresh record high of $90.04 per ounce. This rally was fueled by strong industrial demand and safe-haven flows. Platinum also saw gains, rising 4% to $2,415.21, approaching its own record peaks. These moves reflect broader trends of safe-haven demand in the commodities market.

Geopolitical risks in Iran, marked by anti-government protests and threats of U.S. military action, have heightened demand for safe-haven assets. The situation underscores the ongoing volatility in the Middle East, which often influences commodity prices. Investors are closely watching these developments for further market implications.