India, Jan. 26 -- 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 fo...