New York, January 20, 2026, 17:10 EST — After-hours
- Spot gold climbed about 2% to $4,757.33 an ounce, hitting a record high of $4,765.93 earlier. U.S. February futures closed up 3.7% at $4,765.80. The market is betting on two 25-basis-point rate cuts from the Fed starting mid-2026. Treasury Secretary Scott Bessent added that Trump might appoint a new Fed chair as soon as next week. (Reuters)
- Over the weekend, President Donald Trump threatened tariffs on certain European nations concerning Greenland. The dollar index dropped almost 1% to 98.5, while the 10-year Treasury yield pushed past 4.3%. The VIX volatility index spiked to 20.69 at one point. (Investopedia)
- Gold-related U.S. trading climbed alongside the metal: SPDR Gold Shares (GLD) gained roughly 3.8% in late trading, VanEck Gold Miners ETF (GDX) jumped about 5.7%, and Newmont and Agnico Eagle each rose over 4%.
Gold prices closed Tuesday just shy of record highs, having surged past the $4,700-per-ounce mark amid renewed tariff threats that spiked demand for safe-haven assets.
The move matters now because it’s coinciding with a weaker dollar and a surge in market jitters. That combination usually boosts bullion, which struggles when yields climb and investors are relaxed, since it pays no interest.
This rally is rubbing up against politics. Traders now see tariff headlines and chatter about Federal Reserve leadership as key market drivers, not just peripheral noise.
Spot gold climbed roughly 2% to $4,757.33 per troy ounce, the usual measure for precious metals, after touching $4,765.93 earlier. U.S. gold futures for February delivery closed up 3.7% at $4,765.80.
“Gold has pushed further into uncharted territory as investors seek refuge from escalating political risks,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. He pointed to $4,800 and $4,900 as the next clear targets.
Trump’s weekend tariff threat on Greenland added fuel to a wider “Sell America” sentiment creeping through some market sectors. “There is a limit to how many things you can put on the table,” UBS CEO Sergio Ermotti said to CNBC in Davos, per Investopedia.
The rate story underpins everything. Traders are betting on two 25-basis-point cuts starting mid-2026; to clarify, a basis point equals one-hundredth of a percentage point, so 25 bps means 0.25 percentage point.
Gold has surged sharply, leaving it vulnerable if sentiment shifts. A stronger dollar or a fresh spike in yields could prompt a swift sell-off in bullion, especially if tariff chatter fades or expectations for rate cuts diminish.
Silver pulled back slightly after surging past $95 an ounce for the first time, while both platinum and palladium closed the session higher.
Traders will be watching closely as Trump speaks at the World Economic Forum in Davos on Wednesday. Attention will then shift to the Federal Reserve’s policy meeting on Jan. 27-28, followed by a press conference scheduled for Jan. 28. (Federalreserve)
