The price of gold topped $4,700 an ounce for the first time on Tuesday, hitting a new all-time high, while silver neared record highs as rising global political and economic tensions boosted demand for safe-haven investments.
Spot gold rose 1.3 percent to $4,727.99 an ounce, while the intraday high was $4,731.34. Silver rose 0.7 percent to $95.34 an ounce, after hitting a record high earlier in trading, according to Reuters.
US gold futures for delivery in February rose three percent to $4,734.10 per ounce, Fena reports.
The rise in precious metal prices came after US President Donald Trump announced the possibility of imposing new tariffs on eight European countries from February 1, raising fears of a renewed trade war and further unsettling global markets.
Analysts say that concerns about economic growth, expectations of lower interest rates in the United States of America, as well as increased geopolitical tensions, are the key factors pushing the price of gold to record levels.
Since the beginning of the year, gold has increased by 9.5 percent, while in the past year it has recorded a growth of more than 70 percent. Additional stimulus comes from strong purchases by central banks and increased investments in ETF funds, which confirms the role of gold as a safe haven in uncertain times.
