WASHINGTON (dpa-AFX) - Gold prices surged to a new record high on Monday as Middle East tensions reached a boiling point, with a U.S. fleet reportedly in striking distance of Iran, driving investors to seek safe-haven assets.
Front Month Comex Gold for January delivery soared by $103.50 (or 2.08%) to $5079.70 per troy ounce. Notably, this is a new record high for gold prices, which have increased for five consecutive sessions.
Front Month Comex Silver for January delivery skyrocketed by $14.1550 (or 14.03%) to $115.080 per troy ounce. This is also a new record high also for silver prices, which have risen for three consecutive sessions.
The anti-government protests in Iran that started late December 2025 were curbed after a heavy crackdown by the ruling clerical regime, resulting in the deaths of thousands of civilians.
Several human rights groups reported that several demonstrators were executed and tens of thousands were arrested, with many facing capital punishment. Authorities still continue to raid hospitals and clinics to take the injured protestors under treatment into custody.
U.S. President Donald Trump had earlier warned Iran to stop the violence, or else the U.S. would intervene to control the situation. However, he later announced that he had confirmed reports that the killings had stopped.
After Iran's judiciary warned of stern punishments for protestors with no leniency, Trump confirmed that an 'armada' was heading to Iran.
Undeterred by the U.S. threats, Iran's Revolutionary Guard Commander General Mohammad Pakpour stated that Iran has its 'finger on the trigger.'
The USS Abraham Lincoln aircraft carrier and its accompanying fleet are currently nearing Iran.
Reports indicate that Iran's Supreme Leader Ayatollah Ali Khamenei has been shifted to an underground fortified shelter in Tehran to escape from any potential U.S. attack and that the day-to-day governance is handled by Khamenei's third son.
Amid U.S. war-threats, Iran had unveiled a mural in central Tehran threatening the U.S. which read, 'If you sow the wind, you will reap the whirlwind.'
Earlier this month, U.S. forces stormed Venezuela, captured its President Nicolas Maduro, flew him to the U.S., and put him on trial in the U.S. court.
Experts are concerned that Trump is planning something on similar lines.
As a consequence, continuing its rally, the yellow metal is soaring to new levels due to increasing safe-haven demand.
Notably, gold prices, which soared around 64% in 2025 after dismantling several previous records, have risen around 18% since the beginning of 2026.
On the tariff front, Trump pushed the pedal harder on Canada, threatening to slap a 100% tariff on imports if Canada signs a free trade deal with China.
The U.S. Supreme Court, which is deciding a case challenging the legal validity of Trump's tariffs is likely to announce its decision only by late February, leaving the global uncertainty to linger for a few more weeks.
The U.S. Federal Reserve's meeting kicks off on Tuesday (January 27) and concludes on Wednesday. With data showing inflation holding steady, investors are not keenly anticipating another interest rate cut.
In less than three months after a government shutdown ended, Trump's administration is heading to face another one this weekend as a few Democrats are reportedly planning to oppose any funding bill that includes financing the Department of Homeland Security.
The hard-stance by Democrats follows a fatal shooting of a 37-year-old, male ICU nurse Alex Pretti in Minneapolis by federal officers at an anti-immigration rally on January 24.
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