Gold Shoots to ATH of $4,600 As Chaos Erupts in Iran

Gold reaches a new high as investor interest in defensive assets rises due to the Iranian crisis. Trump's Venezuela remark raises political concerns as markets remain uneasy.

On January 12, gold soared to a new high above $4,600 per ounce as investors shifted into defensive assets amid deadly turmoil in Iran and mounting political tensions linked to the United States Federal Reserve. Following the rise, spot prices fell marginally.

Gold hits a Record high With Unrest in Iran

Spot gold temporarily surged to around $4,600 before reverting, while futures reached new highs. The metal surged as much as 2% in intraday trading, after a week in which the price increased by more than 4%, reaching a record high.

The gold rally was part of the pushback, which was linked to a deteriorating situation in Iran, where protests and strikes have continued into the third week. Since late December's rallies over inflation and currency collapse, activist groups and rights monitors have documented hundreds of deaths and more than 10,000 arrests.

According to the Associated Press, at least 544 people have died. It has generated concerns that the crackdown may cause a security catastrophe throughout the Middle East.

US President Donald Trump threatened military action if Iranian soldiers continued to crack down, escalating tensions. He warned that action could be taken if Tehran threatens regional allies or US bases.

Iranian leaders responded by stating that the country was prepared for war but also indicating a conditional willingness to talk. The mix of risks and a low-volume market drove demand for defense positioning.

Trump Asserts Venezuela Intervention as Bitcoin Trades in a Close Band

Donald Trump published a Truth Social photo claiming to be Venezuela's interim president, as well as a Wiki-style order. It also referred to him as the 45th and 47th President of the United States, with his inauguration scheduled for January 20, 2025.

The post was issued during a period of rising tension. The United States military captured President Nicolás Maduro and his wife in Venezuela. A US federal court charged Maduro with cocaine trafficking and other crimes.

In an X post, analyst Leviathan noted that the Bitcoin price has historically trailed gold in each market cycle before quickly catching up. He maintained that the cycle sees capital entering traditional safe havens initially, then migrating into Bitcoin as risk returns. The analyst believes Bitcoin is “next in line” for volatility.

Bitcoin is trading below its October peak of more than $126,000. After a brief rally near $94,000 early this month, enthusiasm has slowed.