Gold surged past the $4,700 an ounce mark for the first time on Tuesday, and silver hovered just below a fresh record high, as global tensions sparked yet another rush to safety, reports Reuters.
Spot gold gained 1.2 per cent to $4,726.86 per ounce by 1131 GMT, having hit an all-time high of $4,737.10, while silver rose 0.7 per cent to $95.308/oz, after hitting a record $95.488 earlier.
US gold futures for February delivery climbed 3 per cent to $4,732.60/oz.
US President Donald Trump threatened to impose increasing tariffs from February 1 on eight European countries until the US is allowed to buy Greenland, fuelling fears of a renewed trade war.
"Growth concerns driven by threats of additional tariffs and the desire of Trump to have lower US interest rates are the drivers pushing gold to a new record high," said UBS analyst Giovanni Staunovo.
Gold gained 9.6 per cent in just 20 days of 2026 and over 70 per cent since Trump's second term began a ?year ago. Geopolitical tensions have been at the forefront of the rally, with expectations of monetary policy easing also playing a significant role. Strong central bank buying and ETF inflows have also contributed to the unprecedented rise.
Instability in policy and politics drives investors to store value in traditional safe-havens like gold, while lower interest rates limit the downside of holding non-yielding assets.
Investors also await a decision on a US Supreme Court case concerning Trump's attempts to fire Fed Governor Lisa Cook, that could in the extreme erode the central bank's independence.
"We still see further upside for the yellow metal, targeting a price of $5,000/oz," Staunovo said.
Silver rose 147 per cent in 2025, supported by its critical mineral designation in the US, and a structural market deficit. The metal has gained 33.7 per cent so far this year.
