Gold and silver prices surged to unprecedented all-time highs on Monday, January 12, 2026, as investors flocked to traditional safe-haven assets. The COMEX gold contract reached a record high of $4,612.40 per ounce, settling at $4,580.74, marking a 1.8% gain. Silver experienced an even more explosive rally, with its COMEX contract hitting a record $83.880 per ounce and trading at $83.475, up 5.3%.
The dramatic price action is driven by a confluence of factors. Escalating geopolitical tensions, particularly surrounding Iran, have significantly boosted safe-haven demand. Following deadly protests in Iran, former President Donald Trump has reportedly considered military responses, prompting threats from Tehran against U.S. bases. Analyst Lallalit Srijandorn of FXstreet noted, "Uncertainty and geopolitical risks across the globe have boosted a traditional safe-haven asset like gold."
Simultaneously, growing expectations for U.S. Federal Reserve interest rate cuts are providing a powerful tailwind. A mixed U.S. jobs report reinforced investor bets for at least two rate cuts in 2026. Lower interest rates reduce the opportunity cost of holding non-yielding assets like precious metals. Fed Chair Jerome Powell has also faced political pressure, recently dismissing a Trump administration threat of a criminal indictment as a "pretext" to force rate cuts.
Notably, the rally is occurring alongside a weakening U.S. dollar, breaking from historical patterns. The U.S. Dollar Index (DXY) fell to 98.53, defying its typical role as a geopolitical hedge. Gold stock analyst Garrett Goggin observed, "The USD used to spike higher when the bombs dropped. Not anymore." This divergence signals a potential shift in market dynamics and waning confidence in fiat currency frameworks.
Analysts point to structural factors behind the move. Silver entering a state of contango—where futures prices trade above spot prices—suggests significant corporate and industrial buying for hedging purposes, indicating real-economy demand. Furthermore, commentators like Kip Herriage argue the rally represents a "delayed repricing" after years of alleged market suppression, citing JPMorgan's 2020 manipulation fine as a turning point.
Technically, the outlook remains bullish. Gold's price is contained within an upward-sloping channel and trades well above its 200-period Simple Moving Average (around $4,320-$4,325), which acts as dynamic support. Momentum indicators like the MACD remain positive, though the RSI at 71.82 suggests the market is overbought and may consolidate.
Prominent figures like author Robert Kiyosaki project the rally is far from over, viewing it as a "generational shift." Kiyosaki stated he would buy silver up to $100 per ounce. Some speculative discussions even extend to the potential for a basket of gold, silver, and Bitcoin to partially back future U.S. Treasury debt, highlighting a deep search for monetary credibility.
