New York, Jan 19, 2026, 12:06 EST — Market closed.
- Spot gold jumped to a record high of $4,689.39 per ounce, rising 1.6% in light holiday trading.
- Trump threatened to ramp up tariffs on eight European countries linked to a dispute over Greenland.
- Traders are eyeing U.S. inflation figures set for Jan. 22, plus the Fed meeting scheduled for Jan. 27-28.
Gold surged to a fresh peak Monday as investors sought refuge following U.S. President Donald Trump’s threat of additional tariffs on European nations amid tensions over Greenland. Spot gold climbed 1.6% to $4,669.69 an ounce by 10:08 a.m. ET, hitting an all-time high of $4,689.39 earlier. February futures in the U.S. added 1.7% to $4,675. “When institutional and policy risks resurface, markets tend to react swiftly by reallocating toward safe-haven assets,” said Linh Tran, senior market analyst at XS.com. Reuters
The announcement came as U.S. stock markets were closed for Martin Luther King Jr. Day, shifting most of the reaction into futures, FX, and commodities. S&P 500 and Nasdaq futures tumbled over 1.2%, while the dollar weakened against the yen and Swiss franc as investors moved away from risk. “There is obviously a response (in financial markets) to the new tariff threats,” said George Lagarias, chief economist at Forvis Mazars. Reuters
Trump announced a 10% import tariff starting Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain. The tariff would jump to 25% on June 1 unless the U.S. secures a deal to buy Greenland. European leaders stood firm behind Denmark and warned the move risks harming transatlantic relations and recent trade deals. Carsten Brzeski, ING Research’s global head of macro, advised Europe to “just ignore it and wait and see.” Reuters
The timing of that tariff is key for bullion, sparking a policy shock that usually boosts demand for safe-haven assets—those instruments investors turn to when seeking refuge from market turmoil. Since gold yields no interest, bets on falling rates can also support its price.
Rate traders are zeroing in on the Federal Reserve once more, reacting to signs that the labour market is cooling. Markets now price in more easing before year-end. Gold’s recent rally has been steep: it’s climbed over 8% so far in 2026, following a hefty 64% jump in 2025.
Silver followed gold upward, attracting momentum buyers once more, with platinum and palladium also posting gains. Citi Research stayed tactically bullish on precious metals, setting short-term targets of $5,000 an ounce for gold and $100 for silver within the next three months.
The rally, however, sets gold up for sudden pullbacks if Washington eases its trade threats, Europe reacts calmly, or the dollar gains strength. Rising yields would challenge a market that’s been snapping up dips throughout January.
As U.S. markets reopened Tuesday, traders focused on whether equity and bond investors would back the risk-off shift that sent gold to new highs. Attention now turns to gold-linked ETFs and miners, which could see a catch-up rally following the holiday pause.
On Jan. 22, the spotlight turns to U.S. inflation figures with the personal consumption expenditures price index release. Then, the Fed convenes for its policy meeting on Jan. 27-28. After that, all eyes will be on Feb. 1 — will tariffs kick in for real, or will it just mark another deadline for negotiations?
