Gold prices surged to an unprecedented high on Wednesday, January 21, 2026, reaching as much as $4,850 per ounce, as rising geopolitical tensions and trade uncertainties pushed investors toward safe-haven assets.
The precious metal has been on a remarkable rally, driven largely by fears of escalating global trade conflicts and growing expectations that the US Federal Reserve may be forced to cut interest rates. Investors remain uneasy about worsening relations between the United States and Europe, with renewed tariff threats adding pressure to already fragile markets.
Gold’s upward journey has been dramatic. The metal started 2025 trading around $2,640 per ounce, climbed steadily to about $3,200 by April, and remained relatively stable through the summer months. Momentum picked up again in the final quarter of the year, with prices breaking above $4,300 by mid-October before accelerating sharply into early 2026.
On the spot market, gold gained about 1.3 percent after briefly touching $4,700, while silver also strengthened, rising 0.7 percent to trade around $95.34 per ounce. Silver has been one of the standout performers this year, posting gains of nearly 20 percent within the first two weeks of January.
Market anxiety intensified after US President Donald Trump threatened to impose higher tariffs on eight European countries from February 1, 2026, unless the United States is granted the right to purchase Greenland. The remarks reignited fears of a renewed transatlantic trade war.
So far in 2026 alone, gold has gained roughly 9.5 percent, while prices are up more than 70 percent since Trump began his second term. Major global gold producers include China, Australia, the United States, South Africa, Peru, Russia, and Indonesia.
