Gold surged previous $4,700 an oz for the primary time on Tuesday as traders moved into safe-haven property amid renewed trade-war fears.
Spot gold rose 1.2% to $4,726.86 per ounce by 1131 GMT after touching an all-time excessive of $4,737.10.
U.S. gold futures for February supply climbed 3% to $4,732.60/oz.
Tariff menace lifts demand for security
U.S. President Donald Trump threatened to impose escalating tariffs from Feb. 1 on eight European international locations till the U.S. is allowed to purchase Greenland, in keeping with the report.
UBS analyst Giovanni Staunovo mentioned the rally is being pushed by development issues tied to tariff threats and expectations Trump desires decrease U.S. rates of interest.
Staunovo mentioned:
“Progress issues pushed by threats of extra tariffs and the will of Trump to have decrease U.S. rates of interest are the drivers pushing gold to a brand new file excessive.”
Rally accelerates in early 2026
Gold has gained 9.6% within the first 20 days of 2026 and is up greater than 70% since Trump’s second time period started a 12 months in the past.
Reuters mentioned geopolitical tensions, expectations of financial coverage easing, sturdy central financial institution shopping for, and ETF inflows have contributed to the transfer.
Fed case in focus
Traders are additionally awaiting a choice in a U.S. Supreme Courtroom case over Trump’s makes an attempt to fireside Fed Governor Lisa Prepare dinner.
Reuters mentioned the case may, in an excessive end result, erode the central financial institution’s independence.