Global spot gold prices rose by nearly 75 USD to 4,670 USD at the close of trading on 19/1. During the session, prices briefly touched a new record of 4,689 USD, before retreating slightly to 4,662 USD.

The US president, Donald Trump's, threat to impose import tariffs on European allies until the acquisition of Greenland intensifies trade tensions. "When policy risks resurface, markets tend to react quickly by reallocating funds into safe-haven assets. Gold once again becomes the preferred choice," stated Linh Tran, a senior market analyst at XS.com.

World gold prices increased sharply during the 19/1 session. Chart: Kitco

Gold typically performs well during periods of economic and political volatility, especially when interest rates are low. Last year, the precious metal saw a 64% increase, and it has climbed 8% year-to-date.

Last week, Michelle Bowman, the vice chair for supervision at the Federal Reserve, indicated that a fragile job market means the Fed must be prepared to cut interest rates further if necessary. While the market currently anticipates the agency will maintain its policy at the 27-28/1 meeting, investors are betting on at least two rate cuts this year.

Silver prices also surged, climbing 5% to 94,4 USD an ounce on monday. During the session, silver reached 94,61 USD, its highest level ever. The precious metal has increased by 32% since the beginning of the year.

Analysts at Citi Research remain optimistic about precious metals. They forecast gold to reach 5,000 USD an ounce and silver to hit 100 USD within the next three months, citing the likelihood of sustained geopolitical tensions in the short term.

Beyond gold and silver, platinum prices rose 1,5% to 2,362 USD. Palladium gained 1,1%, closing the first session of the week at 1,819 USD.

Ha Thu (according to Reuters, Kitco)