Gold surged to an unprecedented level in global markets, breaching the $4,700-an-ounce mark for the first time, as escalating geopolitical and economic uncertainty pushed investors toward safe-haven assets.

Spot gold rose 0.7% on Tuesday to $4,699.93 an ounce, according to data cited by Reuters. Prices touched an all-time high of $4,701.23 during the session. In the US futures market, gold for February delivery jumped 2.4% to trade at $4,706.50 an ounce.

Silver also hovered near record territory. Spot silver climbed to $94.27 an ounce, after briefly hitting a session high of $94.72 earlier in the day.

Analysts attribute the rally to heightened global uncertainty following threats by US President Donald Trump to impose additional tariffs on European allies, prompting investors to reduce exposure to riskier assets and seek refuge in precious metals. The move has propelled gold beyond the $4,700-an-ounce threshold for the first time in history.

Tim Waterer, chief market analyst at KCM Trade, said Trump’s “disruptive” approach to international policy and his repeated calls for lower interest rates have created a supportive environment for precious metals. “Trump’s second term has so far been a blessing for gold and silver,” Waterer said, adding that the president’s unconventional political stance has accelerated the upward momentum in prices.

Gold prices have risen more than 70% over the past year since Trump began his second term. Additional support has come from concerns over the independence of the Federal Reserve, as markets anticipate that the US Supreme Court may hear a case this week challenging efforts to remove Fed Governor Lisa Cook. The uncertainty surrounding the central bank has further bolstered demand for gold.

Despite Trump’s continued pressure for rate cuts, the Federal Reserve is widely expected to keep interest rates unchanged at its Jan. 27–28 policy meeting. Historically, non-yielding assets such as gold tend to perform well during periods of low interest rates and heightened geopolitical or economic uncertainty.

Kelvin Wong, senior market analyst at OANDA, said slowing labor market conditions and weakening consumer confidence could prompt the Fed to continue its rate-cut cycle through 2026, with the next reduction potentially coming in June or July.

Among other precious metals, spot platinum fell 0.8% to $2,355.60 an ounce, while palladium slipped 0.7% to $1,828.58 an ounce.

Source: Agencies