Precious metals reached record level
Gold and silver prices in the international market have created history on Monday. The spot price of gold rose 1.6% to $ 4,670.01 an ounce, after hitting an all-time high of $ 4,689.39 as investors fled to safe havens. At the same time, silver has also made a big jump and is trading at $ 93.85 an ounce with a rise of 4.4%. Silver also hit a record high of $94.08 during trading.
Trump’s ‘Greenland’ insistence and threat of tariffs
The main reason for this sudden rise in the market is a statement by US President Donald Trump. Trump threatened on Saturday to impose a wave of tariffs on European allies unless the US is allowed to buy Greenland. The controversy regarding this Arctic island of Denmark is deepening. According to EU diplomats, the EU has also started preparing to retaliate, raising the risk of a new trade war.
Stock market is scared, dollar falls
After Trump’s tariff threats, an environment of risk aversion has arisen in global markets. There has been a decline in US stock futures and the dollar. Investors are moving money out of risky options like the stock market and into safe assets like gold, Japanese yen and Swiss franc. The weakening of the dollar has also made buying gold cheaper and attractive for foreign currency holders, providing further support to prices.
Expectation of cut in interest rates
Federal Reserve Vice Chair Michelle Bowman has indicated that the US job market is in a fragile state and could weaken rapidly. In such a situation, the US central bank should be prepared to cut interest rates again if needed. In an environment of low interest rates and economic uncertainty, investing in gold is considered to be the most beneficial, because gold does not earn any interest, but it is a companion of crisis.
China’s sluggish economy and demand
China’s economic growth is likely to fall to a three-year low in the fourth quarter. Weak domestic demand and structural imbalances pose risks to the outlook there. Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold ETF, rose 1.01% on Friday, reflecting growing investor confidence. However, retail buying has slowed down currently due to skyrocketing prices in India.
Last Updated: 19 January 2026