Precious metals soared on Tuesday as investors sought safe havens in response to escalating U.S.–Europe trade tensions and declining risk appetite in global markets.

Spot gold climbed past $4,700 an ounce to fresh record highs, while silver remained near its own peaks as traders rushed into metals seen as reliable stores of value during uncertainty.

Silver’s performance was similarly buoyed by safe-haven flows, with prices remaining elevated even amid thin early-year liquidity, indicating strong demand for perceived protective assets.

Precious metal miners also saw share gains as benchmark metals prices climbed, reflecting broader commodity market responses to risk sentiment.

Some strategists suggested that the metals rally could be sustained if trade tensions deepen or extend into broader tariff escalation and counter-measures.

The robust increase in precious metals contrasted with weakness in equities and pressured currencies, illustrating how investors rotate capital in response to adverse macro and geopolitical signals.

A weaker U.S. dollar versus safe-haven currencies further boosted the appeal of gold and silver for non-U.S. investors, amplifying price moves.

The metals’ performance has become a key barometer of global risk perception, with traders closely watching related data flows and policy shifts.

These record levels for precious metals come despite some stabilising economic data from China and other major economies, highlighting the outsized influence of geopolitical tension on investor flows.

Central banks and institutional allocators are evaluating whether such moves feed into broader asset-allocation changes for 2026.

For traders, the ongoing rally in gold and silver will likely remain a focal point, particularly if tariff disputes intensify or geopolitical flashpoints persist, prompting continued safe-haven demand that could influence broader commodities markets.

Source: Reuters.