Gold jumps to the highest level in its history as global tensions escalate
Gold prices jumped above the level of $4,700 per ounce for the first time in its history during Tuesday’s trading, while Silveris near its highest record level, amid a wave of demand for safe assets as a result of escalating global tensions.
The price of Goldin spot transactions rose 1.2%, reaching $4,726.86 per ounce by 11:31 GMT, after hitting a record level of $4,737.10.
Silver rose 0.7% to $95.308 per ounce, after touching a new record level at $95.488 earlier in the session.
Greenland, which fueled market fears of a new wave of trade war.
Giovanni Staunovo, a commodity analyst at UBS Bank, said: “Fears of slowing growth resulting from tariff threats, along with Trump’s desire to reduce US interest rates, are the main drivers that pushed gold to record new record levels.”
Gold recorded gains of about 9.6% since the beginning of 2026 in just 20 days, It has risen by more than 70% since the start of Trump’s second term a year ago.
Geopolitical tensions and expectations of easing monetary policy, in addition to strong purchases from central banks and record flows into gold-backed index funds, have contributed to supporting this unprecedented rise.
Political instability and fluctuations in economic policies push investors towards storing value in traditional havens such as gold, while low interest rates limit the cost of holding non-yielding assets.
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Investors are awaiting the decision of the US Supreme Court regarding Trump’s attempt to remove Federal Reserve Board member Lisa Cook, an issue that, if escalated, may affect the independence of the US Central Bank.
Staunovo added: “We still see room for further rise in the yellow metal, with a target of $5,000 per ounce.”
With regard to silver, it jumped by 147% during the year 2025, supported by its classification as a metal. Critical in the United States, in addition to the structural deficit in the market, and it has risen by 33.7% since the beginning of this year.
Said Nitesh Shah, commodities strategist at "Wisdom Tree"Silver reflects the same factors that support gold, adding: “We may witness a broadening of the buyer base, but I am currently more cautious of some risks of decline before opening a new rising wave.”
In other precious metals markets, platinum rose in spot trading by 1%, while palladium rose by 0.9% to $1,858.91 per ounce.
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