As a result, gold and silver reached record levels on Monday. This was due to a flight for safety that occurred after US President Donald Trump announced additional tariffs against certain European countries over a dispute regarding Greenland.
As geopolitical tensions continue to be high, analysts expect both precious metals to rise continuously.
Gold crossed its December peak and moved within a tight range last week. The gap has signaled a new upward trend.
The gold price is expected to gradually rise towards the upper limit of an ascending steep channel, near $4765, and projected prices around $4850.
Geopolitical tensions trigger rally
Trump escalated the dispute on Saturday over Denmark’s Greenland. He threatened several European allies, threatening them with increasing tariffs, unless they allowed him to buy it.
Trump’s threats to increase tariffs have triggered an overall risk-averse trend across the global market, resulting in a drop in stocks and dollar.
The uncertainty caused investors to demand traditional assets that are considered safe, like gold, Japanese yen and Swiss franc.
When there are geopolitical and economic uncertainties, as well as low interest rates, gold is a good investment.
Its upward trend continued in 2018.
The COMEX Gold contract is currently at $4666.66 an ounce. This represents a 1.6% increase.
The contract hit an all-time high earlier that day of $4,697.71 for one ounce.
The COMEX silver contract also reached a new record of $94.350 an ounce during the morning.
The price of gold was $93.118 an ounce on Friday, up 5.2% over the previous closing.
Start strong in 2026
Gold is having one of the strongest years on record despite only being two weeks old. This month, it has risen $256 for a gain of 5.6%.
This is still behind the start of last year when the gold price grew by more than 7 % in January.
The price of silver has risen by almost $17.50 in just one month, the most recent new year rally.
Gray metal prices have risen by over 24% in the last two weeks.
Silver is on track to achieve its highest monthly gain percentage since 1983 when it saw a 26 percent increase in January.
Analysts find it difficult to predict what the near future will bring after the significant increases in gold and Silver this year. This is a continuation of the momentum that began during the second half of 2025.
Kitco’s report suggests that a period calmness and stability could be good for metals.
The monetary policy has a positive impact on the economy
Michelle Bowman, Vice-Chair for Supervision at the Federal Reserve, said on Friday, that if needed, they would be ready to lower interest rates, due to a job market in danger of deteriorating rapidly.
Markets expect the Fed to keep its rates at their meeting on January 27-28, but they also factor in two rate reductions of at least 25 basis points later this year.
Prices of precious metals are rising due to geopolitical issues in Iran, Venezuela and Greenland as well as concern about the independence of US Federal Reserve.
Barbara Lambrecht is a commodity analyst with Commerzbank AG. She said that if the price situation were to ease a little bit, it could be a slight drop.
We generally believe that the current price levels are well-supported.
Lambrecht said that “the gold price will benefit because the Fed expects to reduce key interest rates sharply, while the silver price may be helped due to the tight market for many years, as well as the difficulty of reducing silver’s proportion in industrial applications (known by its trade name “thrifting”).
Analysts at FXstreet believe gold is not showing signs of “trend fatigue” despite the expectation of interest rate reductions and simmering geopolitical conflicts.
Gold is expected to continue its uptrend as long as global uncertainties and geopolitical risk remain high.
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