Gold prices soared more than 3% on Tuesday, reaching an all-time peak as ongoing economic and geopolitical tensions drove investors toward the safe-haven metal. Spot gold hit a high of $5,181.84 per ounce as of 3:57 p.m. EST, surpassing the $5,000 mark for the first time since Monday. U.S. gold futures for February delivery closed marginally higher at $5,082.60 per ounce.
This year, gold has already gained over 18%, building on last year’s record-breaking rally fueled by rising geopolitical risks, expectations of U.S. interest rate cuts, and increased central bank gold purchases amid a global trend of de-dollarization.
“Rallies typically end when the original drivers fade, but that’s not happening now,” said Michael Widmer, commodities strategist at Bank of America.
Market concerns intensified after President Donald Trump announced plans to impose new tariffs on South Korean imports, while the threat of a partial U.S. government shutdown loomed ahead of the January 30 funding deadline.
Investors are also closely watching the upcoming two-day U.S. Federal Reserve policy meeting, where interest rates are expected to remain unchanged. Fed Chair Jerome Powell’s press conference on Wednesday is expected to provide further insights amid mounting worries about the Fed’s independence.
Deutsche Bank and Societe Generale have raised their forecasts, now predicting gold could reach $6,000 per ounce by year’s end. Additionally, CME Group reported a record one-day trading volume of 3,338,528 contracts on January 26, surpassing the previous record set in October 2025.
Silver and Other Precious Metals
Silver jumped 7.7% to $111.84 per ounce after hitting a record high of $117.69 on Monday. The metal has surged over 57% so far this year, following a remarkable 146% increase in 2024. Widmer cautioned that volatility could persist, but strong fundamentals and inflows into exchange-traded funds (ETFs) could support a target of $170 per ounce.
Citi upgraded its short-term silver price outlook from $100 to $150 per ounce. Meanwhile, platinum declined 5.1% to $2,616.05 per ounce after reaching a record $2,918.80 earlier, and palladium fell 3.2% to $1,919.08.
