Gold surged to a new record above $4,600 an ounce on January 12 as investors shifted into defensive assets during deadly unrest in Iran and rising political tension tied to the U.S. Federal Reserve. Spot prices later eased slightly after the spike.
Gold Hits Record High as Iran Unrest Lifts Safe-Haven Demand
Spot gold briefly rose to around $4,600 before reversing, and futures also reached new highs. The metal rose as much as 2% in intraday trading and ended on top of a week that had the price surging more than 4%, taking it to a record high.
The Gold rally was part of that backlash, tied to a worsening situation in Iran, where protests and strikes have spread into a third week. Activist groups and rights monitors had documented hundreds of deaths and more than 10,000 arrests since demonstrations began in late December over inflation and currency collapse.
According to AP news, at least 544 people have died. It has raised fears that the crackdown could drive a security crisis across the Middle East.
Tensions escalated after President Trump of the United States said he was weighing military options if Iranian forces persisted in cracking down. He also signaled that action could come if Tehran endangers regional allies or U.S. bases.
Iranian officials said in response that the country was ready for war, but also signaled a conditional willingness to talk. The combination of risks and the thin volume market fostered demand for defense positioning.
Trump Asserts Venezuela Intervention As BTC Trades in a Close Band
Donald Trump shared a Truth Social photo saying that he was the acting president of Venezuela alongside another edict photo in Wiki style. It also called him the 45th and the 47th president of the US, and had a date of January 20, 2025, as the date of his inauguration.
Source: Truth SocialThe post was published during a time of increased tension. As CoinGape reported previously, President Nicolás Maduro and his wife were captured by the U.S. military operations in Venezuela. A U.S. federal court brought charges against Maduro on the charge of drug trafficking and other crimes.
In an X post, analyst Leviathan pointed out that the Bitcoin price has historically trailed gold in every market cycle until it rapidly caught up. He contended that the cycle sees capital entering traditional safe havens first before flowing into BTC as risk returns. The analyst also highlighted that Bitcoin is “next in line” for a volatile move.
BTC is trading below the high it reached in October of over $126,000. The momentum has not been strong after a short-term recovery to $94,000 earlier this month.
The current market interest is directed to $90,000 as the key support area. Further fall may reveal the lower part of the range around $85,000, which forms the bottom of the current consolidation. On the upside, a clean break above $94,500 would be required of bulls to change the mood and pave the way to the $100,000 mark.
Source: https://coingape.com/gold-surges-to-ath-of-4600-as-chaos-erupts-in-iran-will-btc-follow/
