Gold, silver hit fresh record highs as tariff threats and geopolitical risks fuel safe-haven rush 

Gold and silver surged to new record highs on January 19, extending gains made after breaking previous peaks last week, as investors flocked to safe-haven assets amid escalating geopolitical tensions and an uncertain global economic outlook.

US gold futures for February delivery rose 1.71% to $4,674.20 per ounce, after touching an all-time high in the previous session. Spot gold climbed 1.6% to $4,668.14 per ounce.   

The rally followed renewed geopolitical unease after US President Donald Trump announced tariffs on goods from eight European countries, linking the measures to negotiations over what he described as the “complete and total purchase of Greenland.” The rhetoric has added to market volatility and heightened risk aversion.   

At current levels, margins in the precious metals space are expected to be four to five times higher than in 2024, according to outlook estimates.   

Silver outperformed gold, surging to historic highs across global markets. US silver futures for March delivery jumped more than 5% to a record $93.035 per ounce, while spot silver gained 3.55% to $93.16 per ounce.   

In India, MCX silver futures for March 5 delivery soared 5% to breach the Rs 3,00,000 per kg mark for the first time ever. At 1.54 pm, silver was trading at Rs 3,03,319 per kg, up Rs 15,557 or 5.41%, after hitting a record high of Rs 3,04,200 earlier in the session.   

“Silver crossing the Rs 3 lakh per kg mark is a historic milestone, reflecting intensifying safe-haven demand amid geopolitical tensions and global macro uncertainty,” said Akshat Garg, Head – Research & Product at Choice Wealth.   

Trump said eight European countries, including France, Germany and the United Kingdom, would face additional tariffs of 10%, potentially rising to 25% by June, until the US is allowed to buy Greenland.   

The tariff announcement comes against a backdrop of heightened geopolitical stress, including recent US actions in Venezuela and renewed tensions with Iran, factors that have collectively boosted demand for precious metals as equities and other risk assets lose favour.   

Market participants note that gold and silver typically perform well during periods of elevated uncertainty. Analysts also point to strong structural drivers supporting the rally. Central banks have sharply increased gold purchases since 2022, creating sustained demand, while expectations of monetary policy easing have lowered real rates, reducing the opportunity cost of holding bullion.   

Silver’s rally is further underpinned by its dual role as both a monetary hedge and an industrial metal. More than half of global silver consumption now comes from industrial uses such as solar panels, electric vehicles, data centers and broader electrification, even as supply remains constrained by lagging mine output and limited recycling.   

“New investors should consider taking positions in silver ETFs as part of a diversified multi-asset portfolio,” Garg said, adding that existing investors should avoid exiting at current levels as supportive forces remain intact.