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Spot gold gained 1.2% to $4,726.86 per ounce by 1131 GMT, having hit an all-time high of $4,737.10, while silver rose 0.7% to $95.308/oz, after hitting a record $95.488 earlier.
U.S. gold futures for February delivery climbed 3% to $4,732.60/oz.
U.S. President Donald Trump threatened to impose increasing tariffs from February 1 on eight European countries until the U.S. is allowed to buy Greenland, fuelling fears of a renewed trade war.
“Growth concerns driven by threats of additional tariffs and the desire of Mr. Trump to have lower U.S. interest rates are the drivers pushing gold to a new record high,” said UBS analyst Giovanni Staunovo.
Gold gained 9.6% in just 20 days of 2026 and over 70% since Mr. 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 U.S. Supreme Court case concerning Mr. 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,” Mr. Staunovo said.
Silver rose 147% in 2025, supported by its critical mineral designation in the U.S., and a structural market deficit. The metal has gained 33.7% so far this year.
Silver could be echoing the same factors as gold, said Nitesh Shah, commodities strategist at WisdomTree.
“We could be getting a wider buyer base, but for the moment I’m a little bit more worried about some of the downside risks before we open up a new opportunity,” he said.
Spot platinum added 1% to $4,732.60/oz. Palladium firmed 0.9% to $1,858.91.
Published – January 20, 2026 05:38 pm IST
