Precious metals hit new all-time highs Tuesday as a result of continued central and bullion bank buying, and global debt fears.
Gold futures hit a fresh record of $4,768 and silver also peaked, touching $95.77.
“Volatility in precious metals has surged; in fact, precious metals have gone parabolic,” said Mitch Feierstein, CEO of the Glacier Environmental Fund Limited.
“In January 2026 alone, silver is up 35%, platinum is up 18%, and gold is up 9%,” Feierstein added. “This extends silver gains in the past 12 months through January 2025 to 224%, platinum to 153%, and gold to 80%.
“The precious metals rally and buying by central banks should not be ignored, but with a cautionary note,” Feierstein continued. “Volatility has increased sharply, suggesting we may see downward price corrections. These downward price moves should be seen as buying opportunities.”
Investors have become risk-averse since the U.S. president ramped up his demands for the Danish autonomous territory, citing national security.
The prospect of another trade standoff between two of the world's biggest economic powers has propelled a rush to safety and dealt a blow to risk assets.
Meanwhile, 10-year Treasury yields surged, currently trading at 4.29% amid a wave of selling of U.S. Treasuries powered by foreign sellers.
Eyes are now on Davos, Switzerland, where tomorrow President Trump is scheduled make a keynote address to the World Economic Forum.
"Davos now becomes the theatre that matters. Not for soundbites, but for whether the adults step back into the room," wrote Stephen Innes of SPI Asset Management.
"If this turns sour, volatility will not stay bottled, " Innes continued. "What would normally be a Ukraine-focused week risks being hijacked by a far more destabilizing question, namely, whether the transatlantic alliance is being stress-tested in public.
"A NATO fracture, even a rhetorical one, is not something markets are trained to shrug off."