Gold prices have reached a historic high, fueled by investors seeking safe-haven assets amid global uncertainty and expectations of future interest-rate cuts. The February 2026 gold futures contract on Comex surpassed $4,720 per troy ounce, marking a 2.71% increase. This surge extends a record rally, with gold prices rising by over 60% in 2025 due to concerns about global tensions and economic volatility.
The prices of precious metals, particularly gold and silver, have soared over the past year as investors navigate market turbulence. The recent rally is attributed to escalating tensions, including the threat of new tariffs by US President Donald Trump on European countries opposed to his proposed takeover of Greenland. Trump’s plan to impose a 10% tariff on imports from eight European NATO nations, including Denmark, has sparked a response from the EU, which vows to defend its economic interests with countermeasures.
The EU is considering reviving a suspended €93 billion retaliatory tariff package and using the Anti-Coercion Instrument to punish economic coercion. The International Monetary Fund (IMF) has warned that an escalation of the tariff dispute could trigger a trade war, affecting global economic growth. Meanwhile, investors expect the Federal Reserve to cut interest rates in 2026, and the US dollar has shown signs of weakening against other major currencies.
Central banks have been adding hundreds of tons of gold to their reserves, further boosting demand. According to Susannah Streeter, chief investment strategist at Wealth Club, gold’s record highs are a result of its allure as a safe haven amid worries about the repercussions of US trade and geopolitical policies. The surge in gold prices reflects investors’ concerns about global economic uncertainty and their search for stable assets.
As the global economic landscape continues to evolve, the demand for safe-haven assets like gold is likely to remain strong. The ongoing tariff dispute and potential trade war between the US and EU will be closely watched, and any further escalation could impact global economic growth. With the Federal Reserve expected to cut interest rates in 2026, investors will be monitoring the situation closely, and gold prices may continue to rise as a result.
