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Gold Nears Record Highs as Trump Proposes 25% Iran Tariffs

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GOLD

On Tuesday, January 13, 2026, gold prices remained remarkably stable near their historic peaks. This resilience comes amid escalating global tensions and critical economic data from the United States. While investor caution ahead of inflation reports briefly slowed the rally, the underlying “safe-haven” demand continues to push the precious metal into uncharted territory.

Market Performance: Chasing the $5,000 Milestone

Spot gold traded approximately 0.2% higher at $4,601.63 per ounce as of early Tuesday afternoon. This follows a breathtaking record high of $4,629.94 reached in the previous session. Meanwhile, U.S. gold futures for February delivery showed a slight dip of 0.1%, settling at $4,610.30.

According to Ricardo Evangelista, an analyst at ActivTrades, the $5,000 mark is no longer a distant dream. He noted that with prices consolidating firmly above $4,500, the psychological barrier of $5,000 could be tested as early as the first half of 2026.

Geopolitical Ignition: Ukraine and Iran Tensions

The primary catalyst for gold’s current strength is the volatile geopolitical landscape. Early Tuesday, Russian forces launched their most intense missile wave of the year against Ukraine, targeting vital energy infrastructure and civilian centers. Additionally, fresh uncertainty emerged from Washington.

On Monday night, President Trump announced a sweeping 25% tariff on any country that conducts business with Iran. This bold move aims to tighten economic pressure on Tehran following a deadly domestic crackdown on protesters. Historically, such “trade war” rhetoric drives investors away from risky currencies and toward the stability of gold.

The Federal Reserve’s “Wait-and-See” Stance

While geopolitics push gold up, the U.S. Federal Reserve provides a stabilizing counterweight. Federal Reserve Bank of New York President John Williams signaled on Monday that the central bank feels no immediate pressure to adjust interest rates.

Furthermore, today’s Consumer Price Index (CPI) report showed that while inflation remains “sticky” at 2.7%, it is not accelerating. Investors are currently pricing in at least two interest rate cuts for later this year. Since gold does not provide a yield, it typically becomes more attractive to investors when interest rates are expected to fall.

Regulatory Shakeup: CME Group Changes the Rules

In response to historic market volatility, the CME Group announced a significant change to its trading rules. Effective after Tuesday’s close, the exchange is switching from a fixed dollar amount to a percentage-based system for setting precious metal margins.

As a result, traders will now need to provide approximately 5% collateral for gold and 9% for silver based on the total contract value. This move aims to ensure adequate collateral coverage as prices continue to swing wildly.

Other Precious Metals Hit Record Highs

Gold is not the only metal enjoying a historic rally. Other precious metals also reached significant milestones on Tuesday:

  • Spot Silver: Gained 2.3% to $86.94 per ounce, just shy of its new record of $87.16.
  • Spot Platinum: Rose to $2,352.89 per ounce, following a peak of $2,478.50 in late December.
  • Palladium: Edged up to $1,847.25 per ounce, reflecting a 76% gain over the past year.

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