GEOPOLITICAL ISSUES CONTINUE TO FUEL GOLD, SILVER PRICES

Mon 19 January 2026:

Gold prices hit record high on Monday amid ongoing geopolitical and economic uncertainty, particularly an increase in tariffs.

Gold rose around 1.63% as of 0830GMT Monday to $4,670 an ounce, after hitting $4,690 thresold as a historical high point.

In the last 12 months, gold prices soared around 72.9% amid trade and geopolitical tensions, and central bank rate cuts.

Silver also rallied 3.6% to $93.2 per ounce on Monday. In the last 12 months, silver surged by over 207.2%.

In an escalation over Greenland, US President Donald Trump announced on Saturday that he would impose 10% tariffs on Feb. 1 on goods from Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the UK for opposing US control of Greenland and sending military personnel to the Danish territory. The rate, he said, would increase to 25% if an agreement is not reached by June 1.

European countries said the announcement could undermine transatlantic relations, and vowed to retaliate collectively.

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Gold is a timeless and crucial asset for several key reasons.First, it serves as a reliable store of value, preserving wealth over centuries unlike fiat currencies that can depreciate.

Second, gold acts as an effective hedge against inflation — when prices rise, gold typically holds or increases its purchasing power.

Third, it’s a proven safe-haven during uncertainty — economic crises, geopolitical tensions, or market turmoil drive investors to gold, as seen in its 66% surge in 2025 amid global events.

Fourth, gold enhances portfolio diversification — with low correlation to stocks and bonds, it reduces overall risk and improves long-term returns.

Finally, its scarcity, liquidity, and no credit risk make it a strategic reserve for central banks and individuals alike.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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