New York, January 20, 2026, 13:41 (EST) — Regular session
Gold prices smashed through $4,700 an ounce on Tuesday, hitting fresh highs as investors sought safety amid fresh U.S. tariff threats against Europe. Spot gold climbed roughly 2% to $4,761.58 per ounce by 1:02 p.m. ET after reaching $4,763.07; U.S. February futures jumped 3.7% to $4,766.80. Silver briefly surged past $95. “Gold has surged deeper into uncharted territory as investors hedge against rising political risk,” said Fawad Razaqzada, market analyst at City Index and FOREX.com, noting the metal soared 64% in 2025 and has added another 10% this year. 1
Risk gauges surged as stocks and the dollar slid, pushing the “Sell America” trade further after Washington’s fresh tariff threat. The Cboe Volatility Index, or VIX — which tracks expected U.S. stock volatility — hit 20.69, its highest in eight weeks. Meanwhile, the S&P 500 dropped 1.1%, and the dollar fell 0.6% versus a basket of currencies. “Take equity risk off the table, buy gold, buy cash,” advised Alex Morris, CEO and CIO of F/m Investments. 2
Gold usually reacts to changes in interest rates and the dollar. Rising U.S. yields tend to dull its appeal since it doesn’t offer any yield itself. But if the dollar weakens, gold gets cheaper for buyers with other currencies.
Gold-related U.S. stocks tracked bullion’s uptick. The SPDR Gold Shares ETF climbed roughly 3.9%, matching the iShares Gold Trust’s gain. VanEck Gold Miners ETF outpaced them, rising about 5.2% in early afternoon trading. On the miner side, Newmont increased around 3.5%, while Agnico Eagle surged about 5.3%.
Some traders are now eyeing Washington for hints on who might be the next Fed chair, after Treasury Secretary Scott Bessent suggested President Donald Trump could announce a pick as soon as next week. Bessent mentioned the shortlist has been cut to four candidates, including Fed Governor Christopher Waller and former Fed Governor Kevin Warsh. Jerome Powell’s term as chair runs out in May. 3
Any unexpected choice for the Fed chair could shake up rate forecasts and the dollar — key drivers behind gold prices. That’s why bullion’s appeal lately feels less like a steady inflation shield and more like a bet on political uncertainty.
The rally is sharp and packed with buyers. A slip in tariff talk, a stronger dollar, or inflation that refuses to ease might spark profit taking—despite ongoing geopolitical tensions.
Deutsche Bank analysts, led by Jim Reid, pointed out that investors are eager for new developments from the World Economic Forum in Davos, where Trump is set to speak on Wednesday. Reid described Davos as “an ideal location” for Trump to share his perspective, especially as markets seek clues about a potential easing of tariffs. 4
The calendar flips fast after this. The Federal Reserve’s next policy meeting is set for Jan. 27-28, followed by a press conference on Jan. 28. 5
Traders are watching to see if gold can stay above $4,700 by the U.S. close and through upcoming Washington and central-bank news. If it falls below that level, the flight to safety could reverse just as fast.
