Gold: Record Breakout as Iran Tensions Push Price Toward $5,000 Target

LONDON (January 14) Gold (XAUUSD) continues to climb on Wednesday, hitting another record high. The safe-haven rally is being fueled by escalating tensions in Iran and concern over the Federal Reserve’s independence. Rising expectations of additional rate cuts by the Fed are also supportive after the release of softer consumer inflation figures on Tuesday.

Perfect Storm of Catalysts Propels Gold Higher

Essentially, traders are taking advantage of a perfect cluster of key events including geopolitical risks, elevated monetary and fiscal uncertainty, and worries about the Fed’s autonomy. There is no resistance on the charts since we’re at record highs, and there doesn’t appear to be any major sellers standing in the way. Some traders are chasing the momentum, so it’s safe to say the market will continue to rally until it gets too expensive—but who knows what expensive is at this point. The $5,000 target, which was the objective for 2026 for some analysts, seems to be within striking distance before the end of the month.

Trump’s Pressure Campaign Intensifies Market Uncertainty

President Trump appears to be at the forefront of this historical situation with daily comments about punishing Iran for its treatment of protesters and his relentless calls for the Fed’s Jerome Powell to cut interest rates “meaningfully”. Earlier in the week, the Trump administration threatened him with criminal charges after launching an investigation into Fed spending on its renovated headquarters. Meanwhile, global central bankers have rallied around Powell, expressing support for the Fed Chair and issuing an “unprecedented statement of solidarity”, according to Reuters.

FXEmpire