Gold and silver prices hovered near record highs on Tuesday as geopolitical tensions, a weaker US dollar and renewed safe-haven demand kept precious metals firmly in focus.
Spot gold rose 0.1 percent to $4,675.32 an ounce (₹4,25,608 per ounce at $1 = ₹91.00]), after touching an all-time high of $4,689.39 in the previous session. US gold futures for February delivery climbed 1.9 percent to $4,680.30 an ounce. Silver, which had surged to a fresh record of $94.72 an ounce earlier in the session, later slipped 1.4 percent to $93.33.
Global sentiment turned cautious after Trump intensified his push to acquire Greenland from Denmark, triggering unease across European capitals and reviving fears of a fresh trade confrontation between the US and the European Union. The uncertainty has driven investors towards traditional safe-haven assets, particularly gold and silver.
An analyst said gold is consolidating recent gains as markets wait for clarity on Trump’s next move. He said that if tariff threats against the EU are ramped up further, gold could test levels above $4,700 in the near term. However, any diplomatic breakthrough at the World Economic Forum meeting in Davos could reduce gold’s risk premium.
The rally in precious metals has also been supported by a weaker dollar, which slipped to a one-week low amid a broad sell-off in US equities and government bonds. Additional support for gold came from concerns over the Federal Reserve’s independence, with the US Supreme Court expected to hear a case linked to Trump’s attempt to remove Fed Governor Lisa Cook. The Federal Reserve is widely expected to hold interest rates steady at its January policy meeting, despite political pressure for cuts.
Silver’s strength has been particularly pronounced in India. On the Multi Commodity Exchange, silver prices jumped nearly 2.5 percent to a fresh record, rising to as high as ₹3,20,979 per kg after opening lower. Comex silver also touched a record high of $94.74 an ounce, reflecting strong global investment demand.
Market participants say silver is benefiting from both gold’s momentum and its higher sensitivity to geopolitical shocks. Analysts believe sustained safe-haven flows, coupled with expectations of easier monetary policy later in the year, could keep precious metals well supported in the near term, even as volatility remains elevated across global markets.
