By Alex Kozul-Wright

Gold and silver have maintained their meteoric rise in 2026, with prices hitting record highs amid simmering trade tensions between the U.S. and Europe after President Donald Trump threatened eight NATO allies with tariffs unless he is able to acquire Greenland.

Continuous gold futures rose 3.2% to $4,471.1 and silver futures soared 7.4% to hit $95.1.

Mining stocks have benefited, too. Newmont was trading at $118, up 3.4% in early trading. Barrick has performed similarly well, rising 3.6% to $50.1.

Tuesday's gold and silver highs represent a sustained rally that has persisted from 2025, driven by a mix of geopolitical tension and strong investor demand.

Precious metals are often used as a hedge against geoeconomic turmoil, seen as a safer bet than company stocks.

Elsewhere, precious metals have responded positively to a falling U.S. dollar, which has also been hit by Trump's Greenland moves and continued pressure from his administration on the Federal Reserve -- causing concern about the central bank's independence. The two asset classes have historically moved in opposite directions.

The Dollar Index, which represents the greenback's value against six major currencies including the euro, fell 0.9% to 98.5 in early trading Tuesday.

Looking ahead, Citigroup recently predicted that gold and silver prices will break through $5,000 and $100 per ounce, respectively, within the next three months.

Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 20, 2026 05:56 ET (10:56 GMT)

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