New York, January 20, 2026, 17:10 EST — After-hours
- Spot gold surged about 2%, reaching $4,757.33 an ounce, and earlier touched a record peak of $4,765.93. U.S. February futures finished up 3.7%, closing at $4,765.80. Traders are pricing in two 25-basis-point rate cuts by the Fed starting in mid-2026. Treasury Secretary Scott Bessent also mentioned that Trump could appoint a new Fed chair as early as next week. 1
- Over the weekend, President Donald Trump threatened tariffs targeting some European countries over Greenland. The dollar index slid nearly 1%, closing around 98.5. Meanwhile, the 10-year Treasury yield climbed above 4.3%. The VIX volatility index surged, hitting 20.69 at one stage. 2
- Gold-linked U.S. trades surged with the metal: SPDR Gold Shares (GLD) added about 3.8% in late hours, VanEck Gold Miners ETF (GDX) jumped nearly 5.7%, while Newmont and Agnico Eagle both climbed more than 4%.
Gold prices ended Tuesday just below record levels, having jumped past $4,700 an ounce as fresh tariff threats pushed investors toward safe-haven assets.
This shift is significant given it’s happening alongside a weaker dollar and rising market nerves. Typically, that mix lifts bullion, which tends to falter when yields rise and investors feel calm, since it offers no yield.
This rally is bumping up against politics. Tariff headlines and talk about Federal Reserve leadership have moved from background noise to major market movers in traders’ minds.
Spot gold jumped about 2%, hitting $4,757.33 per troy ounce after earlier peaking at $4,765.93. February delivery U.S. gold futures ended the session up 3.7%, closing at $4,765.80.
“Gold has surged deeper into uncharted territory as investors flock to safety amid rising political tensions,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. He identified $4,800 and $4,900 as the next obvious milestones.
Trump’s weekend threat to slap tariffs on Greenland stirred a broader “Sell America” mood spreading through certain market corners. “There is a limit to how many things you can put on the table,” UBS CEO Sergio Ermotti told CNBC in Davos, according to Investopedia.
The rate outlook drives the whole narrative. Traders are pricing in a pair of 25-basis-point cuts beginning mid-2026; just to be clear, one basis point is one-hundredth of a percentage point, so 25 bps equals 0.25 percentage point.
Gold shot up sharply, but that leaves it exposed if sentiment turns. A firmer dollar or another jump in yields might trigger a quick sell-off in bullion, particularly if tariff talk cools off or hopes for rate cuts weaken.
Silver eased off a bit after breaking through $95 an ounce for the first time. Platinum and palladium both ended the day up.
Traders are keenly focused on Trump’s upcoming speech at the World Economic Forum in Davos this Wednesday. After that, all eyes turn to the Federal Reserve’s policy meeting set for Jan. 27-28, with a press conference planned for Jan. 28. 3
