BENGALURU: Gold and silver surged to record highs on Monday as investors sought safe-haven assets amid fresh geopolitical tensions and uncertainty over US trade policy.
Read More: Gold surges Rs7,500 per tola in Pakistan – Daily Times
Spot gold jumped 1.7 per cent to $4,672.49 per ounce by 12:05pm ET, after briefly touching an all-time peak of $4,689.39. US gold futures for February delivery rose 1.8pc to $4,677.70 per ounce as momentum strengthened across commodities markets.
The rally followed remarks by US President Donald Trump, who warned European allies of escalating tariffs in a dispute over Greenland, intensifying concerns about a renewed transatlantic trade clash. Analysts said the threat added to an already volatile geopolitical backdrop, prompting investors to increase allocations to precious metals.
Markets also assessed the Federal Reserve’s upcoming policy meeting scheduled for Jan 27-28. While investors broadly expect the central bank to keep interest rates unchanged, futures pricing indicates expectations of at least two 25-basis-point cuts later this year. Lower borrowing costs typically bolster non-yielding assets such as gold by reducing the opportunity cost of holding them.
Silver outpaced gold on Monday, with spot prices rising 5pc to $94.41 per ounce after hitting a record of $94.61. The metal has gained more than 32pc since the start of the year, driven by both safe-haven buying and industrial demand linked to clean energy technologies.
Analysts at Citi Research reiterated a bullish short-term outlook, projecting gold to reach $5,000 per ounce and silver to hit $100 per ounce within three months if market conditions remain supportive.
Read More: Gold and silver reach record highs on tariff fears
In the local market, Karachi dealers reported gold reaching a fresh high of $4,670 per ounce, lifting 10-gram and one-tola rates to Rs419,549 and Rs489,362, respectively — increases of Rs6,431 and Rs7,500 from Saturday.
Other precious metals also advanced, with spot platinum up 1.5pc to $2,362.65 per ounce and palladium gaining 1.1pc to $1,819.99.