Markets react to geopolitical tensions: gold and silver hit new records

Gold and silver prices hit new records amid heightened geopolitical tensions, with investors reacting to US President Donald Trump’s threats of new tariffs on European countries and his remarks on Greenland.

This is reported by Bloomberg.

Spot gold traded near $4,670 an ounce, temporarily rising to $4,690. Silver added more than 3% and reached a high of nearly $94 an ounce.

Markets are reacting to US plans to impose a basic tariff of 10% on France, Germany, the UK and several other European countries. The tariffs are set to take effect on February 1 and could rise to 25% by June.

Analysts say Trump’s harsh statements about Greenland demonstrate deepening political divisions within Western alliances, undermining confidence in the dollar and spurring demand for safe-haven assets, including precious metals.

The situation is being exacerbated by investor activity. In the past week alone, exchange-traded funds increased their gold holdings by 28 tons, the highest since September. A significant share of demand was provided by investors from China.

Citigroup predicts further growth: the bank does not rule out that gold could reach $5,000 per ounce within three months, and silver – $100.

Spot gold rose 1.6% to $4,670.47 an ounce on the evening of January 19. Silver rose to $93.17, having previously touched $94.12. Platinum rose, while palladium fell slightly.

As previously reported,on January 12, the National Bank of Ukraine set the official dollar exchange rate at 43.08 hryvnias per dollar.

Recall that the US dollar is experiencing one of its most difficult years in the last decade, and most investors expect it to weaken further in 2026. Despite the temporary stabilization, the market does not believe in the long-term recovery of the American currency.

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