Gold prices hit another record high on Monday while the dollar fell against most of its major peers as a result of rising U.S.-Iran tensions and U.S. government shutdown worries.
Spot gold last traded up over 2 percent at $5,097.74 an ounce after hitting a new high of $5,111.11 earlier. U.S. gold futures were up 2.3 percent at $5,133.66.
The dollar started the week on a negative note, with the yen rallying to more than a two-month high amid speculation over possible Japanese intervention to halt the currency’s recent slide – possibly with U.S. assistance.
Meanwhile, the risk of another partial U.S. government shutdown is rising after Democratic senators threatened to block a federal funding bill that includes funding for the Department of Homeland Security (DHS).
Statements and protest sentiments among lawmakers emerged following the second shooting death of a civilian by federal agents in Minneapolis.
Tariff worries also returned to the fore after U.S. President Donald Trump threatened to slap a 100 percent tariff on Canadian exports if Ottawa “makes a deal” with China.
However, Canadian Prime Minister Mark Carney clarified that his country has no intention of pursuing a free trade deal with China and that a recent deal with China merely resolved some tariff-quota issues between the two countries.
Elsewhere in Iran, authorities unveiled a new billboard in a central Tehran Square on Sunday, seemingly aimed at warning the United States against intervention.
Investors also looked ahead to a Federal Reserve interest-rate decision for direction.
The Fed is widely expected to keep interest rates on hold after a two-day policy meeting on Wednesday, despite pressure from President Trump to lower borrowing costs.
Fed officials currently remain divided over whether more rate cuts could drive up inflation.
Gold Scales New Peak On US Government Shutdown Worries
2026-01-26 09:44:28
