Gold hits record high

Prices rose by more than 60% in 2025, partly due to concerns about global tensions and economic volatility

Gold prices have surged to a historic high, extending a record rally as investors navigate geopolitical uncertainty and shifting expectations for future interest-rate cuts.

Gold futures continued their strong rally as the February 2026 contract on Comex reached a new all-time high on Tuesday, surpassing the level of $4,720 per troy ounce, up 2.71%, according to exchange data.

The prices of both gold and silver have soared over the past year, as precious metals are commonly viewed as safe-haven assets during periods of market turbulence. Gold rose by more than 60% in 2025, partly due to concerns about global tensions and economic volatility.

Analysts attribute the recent rally to escalating tensions, including the threat by US President Donald Trump to impose new tariffs on European countries opposed to his proposed takeover of Greenland.

Trump threatened to impose a 10% tariff starting in February on imports from eight European NATO nations, including Denmark, over their opposition to his bid to acquire Greenland, with plans to raise the tariff to 25% on June 1 if a deal is not reached.

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In response to the threats, the EU has vowed to defend its economic interests with countermeasures, including a possible revival of a suspended €93 billion ($108 billion) retaliatory tariff package. Brussels is also considering the use of the Anti-Coercion Instrument, designed to punish economic coercion with measures such as restricting market access, investment, and intellectual property rights.

Earlier this week, the IMF warned that an escalation of the tariff dispute could trigger a trade war, with adverse effects on global economic growth.

At the same time, investors expect the Federal Reserve to cut interest rates in 2026, while the US dollar has also shown signs of weakening against other major currencies at times, and central banks have been adding hundreds of tons of gold to their reserves, all of which is further boosting demand.

“Gold has hit... record highs on its glittering run upwards,” and “is holding even more allure as a safe haven as worries spread about the repercussions of the US aggressive trade and geopolitical policies,” Susannah Streeter, the chief investment strategist at Wealth Club, told the BBC.