Gold prices surged to a record high of $4,700 per ounce for the first time on Tuesday, as escalating global tensions renewed a preference for safe-haven assets. Silver prices also traded just below their own all-time highs.

Spot gold rose 1.2% to $4,726.86 an ounce at 11:31 GMT, surpassing its previous record of $4,737.10, while silver prices climbed 0.7% to $95.308 an ounce, nearing its prior peak of $95.488.

U.S. gold futures for February delivery settled 3% higher at $4,732.60 an ounce.

The primary driver behind this surge is attributed to President Donald Trump's recent threat to impose tariffs on eight European countries unless Greenland is purchased. Reuters reported that this "amplified concerns over a new trade war."

"Concerns over slowing growth due to the threat of further tariffs and President Trump's desire for lower interest rates are driving gold prices to record highs," said Giovanni Staunovo, an analyst at UBS.

Gold prices have risen 9.6% in just 20 days in 2026 and have surged over 70% in the year since the start of President Trump's second term.

Geopolitical tensions have been a major contributor to this rally, and expectations of eased monetary policy have also played a significant role. Strong central bank buying and inflows into ETFs have also contributed to the unprecedented rise.

Policy and political instability encourage investors to hoard value in traditional safe havens like gold, while low interest rates limit the losses incurred by holding non-yielding assets.

Investors are also closely watching a Supreme Court ruling related to President Trump's attempt to oust Federal Reserve Governor Lisa Cook.

Experts anticipate further increases in gold prices. "There is still room for gold to rise further, with a target of $5,000 an ounce," Staunovo said.

Silver has surged 147% due to its designation as a critical mineral in the U.S. in 2025 and structural market deficits. It has risen 33.7% year-to-date.

"Silver could see a broader buying base develop, but for now, I am a bit more concerned about some downside risk before new opportunities emerge," said Nitesh Shah, a commodity strategist at WisdomTree.

Spot platinum gained 1% to $4,732.60 an ounce, while palladium was trading at $1,858.91, up 0.9%.

By Hong Seong-gu, Chief Reporter, NNP / Special Correspondent for this paper NNP info@newsandpost.com