New York, Jan 20, 2026, 06:25 (EST) — Premarket
Gold prices surged past $4,700 an ounce on Tuesday, hitting a new milestone as investors sought safety in the metal. Spot gold climbed 1.3% to $4,727.99 per ounce by 0910 GMT after briefly reaching $4,731.34. U.S. gold futures jumped 3% to $4,734.10. Silver also inched up 0.7% to $95.34, just shy of its record $95.488. “Tariff threats and the push for lower U.S. rates are pushing gold to fresh highs,” said UBS analyst Giovanni Staunovo. The metal has surged 9.5% in the first 20 days of 2026 and soared over 70% since the start of Trump’s second term. (Reuters)
The move follows Trump’s threat to impose new import tariffs on Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain unless the U.S. can buy Greenland. A 10% tariff is set for Feb. 1, rising to 25% by June 1 if no agreement is struck. U.S. cash equity markets were closed Monday for Martin Luther King Jr. Day, shifting much of the initial reaction to futures and overseas trading; gold surged to $4,689 and silver to $94.08 amid the scramble. “There is obviously a response in financial markets to the new tariff threats,” said George Lagarias, chief economist at Forvis Mazars. (Reuters)
European stocks slipped again early Tuesday, while the dollar dropped for a second day and U.S. Treasury yields climbed to a four-month peak amid growing concerns over a fresh U.S.-Europe trade dispute. The dollar index fell 0.6% to 98.485, with the euro gaining 0.7% to $1.1726 as EU leaders geared up for an emergency summit in Brussels on Thursday to discuss possible retaliation, including a suspended 93-billion-euro tariff package. “For the moment it remains relatively contained, there is no panic,” said Amelie Derambure, senior multi-asset portfolio manager at Amundi. (Reuters)
Gold acts as a “safe-haven” asset—investors flock to it when political or market turmoil looms. Since it yields no interest, it becomes more attractive when expectations for lower interest rates leave cash and bonds yielding little.
Investors are turning their focus to Washington, where the U.S. Supreme Court will hear arguments Wednesday in a case connected to Trump’s effort to oust Federal Reserve Governor Lisa Cook. Fed Chair Jerome Powell intends to attend—a rare move that has heightened concerns about threats to central bank independence and what that could mean for interest rate policy. (AP News)
Traders are snapping up protection around early February in currencies, signaling that the tariff deadline is edging into focus as a real risk. Euro two-week implied volatility — measuring expected currency moves — surged to nearly 6%, with sterling’s climbing to a two-month peak at 6.464%, according to Reuters data. (Reuters)
Talk of a broader “Sell America” trade is back in play, as some investors fret that fresh tariff threats might drive foreign capital out of U.S. assets. “A lot of people are fairly aghast … and thinking about how they hold their assets,” said Francesca Fornasari, Insight Investment’s head of currency solutions. Deutsche Bank’s George Saravelos has flagged that tensions within the Western alliance could dampen overseas demand for U.S. exposure. Still, analysts point out that the market’s reaction remains muted compared to April’s “Liberation Day” shock, implying many expect a retreat. (Reuters)
Charu Chanana, chief investment strategist at Saxo, said the Greenland dispute complicates pricing tariff risks because it stems from geopolitics, not traditional trade issues. “When tariffs get tied to geopolitics, the chance they’re used as leverage outside trade disputes goes up,” she noted. Analysts at ANZ and Mizuho also pointed to a rising political risk premium in the dollar as Europe debates how to respond. (Reuters)
As U.S. markets gear up to open in a few hours, gold traders are keen to see if the rally sustains itself once Treasury trading resumes fully and risk assets stabilize.
Gold’s rally has been sharp and could reverse just as fast once the headlines fade. A dip may come if Washington eases up on tariff threats, or if rising bond yields push up the opportunity cost of holding bullion.
Next on the docket: the U.S. cash open, Wednesday’s Supreme Court hearing, and emergency EU talks on Thursday. The Feb. 1 tariff deadline remains the key near-term marker. Expect the dollar and bond yields to react first to any hint of a deal—or a flare-up—before gold moves.
