Gold hits an all-time high above $4,700/oz, driven by a strong flight to safety

Gold has risen 9.6% within the first 20 days of 2026 and has surged more than 70% since Donald Trump began his second term a year ago.

Gold prices topped $4,700 an ounce (oz) for the first time on Tuesday (January 20, 2026), while silver remained just below a new record high, as global tensions sparked a renewed flight to safety.

Spot gold rose 1.2% to $4,726.86 an ounce by 1131 GMT, hitting an all-time high of $4,737.10, while silver rose 0.7% to $95.308/oz, after earlier hitting a record high of $95.488. U.S. gold futures for February delivery rose 3% to $4,732.60/oz.

U.S. President Donald Trump threatened to raise tariffs on eight European countries from February 1 unless they agreed to buy Greenland, raising fears of a new trade war.

“Growth concerns fueled by threats of additional tariffs and Mr. Trump’s desire to cut U.S. interest rates are driving gold to new record highs,” said UBS analyst Giovanni Staunovo.

Gold has gained 9.6% in just 20 days since the start of Mr. Trump’s second term a year ago and is up more than 70% since the start of Mr. Trump’s second term a year ago.

Geopolitical tensions have been at the forefront of the rally, with expectations of easing monetary policy also playing a role. Strong central bank buying and ETF inflows have also contributed to the unprecedented rise.

Policy and political instability have prompted investors to seek value in traditional safe havens like gold, while low interest rates limit losses on holding non-yielding assets.

Investors are also concerned about Mr. Trump’s efforts to fire Fed Governor Lisa Cook. The Supreme Court case is also awaiting a decision, which could severely undermine the central bank’s independence.

“We still see further upside for the yellow metal, targeting a price of $5,000/ounce,” Mr. Staunovo said.

Silver has surged 147% in 2025, supported by its important mineral position and structural market deficits in the U.S. The metal is up 33.7% so far this year.

Silver could be reflecting the same factors as gold, said Nitesh Shah, commodity strategist at WisdomTree.

“We could see a broader buyer base, but right now I’m a little more concerned about some downside risks before we open up new opportunities,” he said.

Spot platinum rose 1% to $4,732.60/ounce. Palladium rose 0.9% to $1,858.91.