Safe-haven demand surges, boosting precious metals

(New York/Astana, Jan 21) Markets grew increasingly concerned that U.S. President Donald Trump’s push to seize Greenland could trigger a high-impact trade war between the United States and Europe, sending investors into safe havens. Gold surged through the US$4,800-per-ounce threshold to a fresh record high, while silver retreated after briefly hitting an all-time peak. Platinum and palladium also climbed.

As of 10:50 a.m. Malaysia time, spot gold was quoted at US$4,837.10 an ounce, up US$72.70 or 1.53%. Spot silver earlier jumped to a record intraday high of US$94.7295 an ounce, but later pulled back to US$93.865, down US$0.77 or 0.81%.

Peter Kinsella, Head of Global FX Strategy at Union Bancaire Privée, said the world has entered an era in which “resource nationalism” is increasingly dominant. He added that currencies may not be the best vehicle to express such geopolitical themes, with gold remaining the strongest conviction trade.

The report noted that the Greenland standoff followed closely on the heels of news that the U.S. had captured Venezuela’s president, adding fuel to the rally in precious metals. Renewed pressure from the Trump administration on the Federal Reserve’s independence also helped push gold and silver higher.

In energy markets, oil prices rose on Tuesday (Jan 20), supported by a temporary shutdown at a Kazakh oilfield and expectations of stronger global growth that could lift fuel demand. As of 10:50 a.m. Malaysia time, Brent crude futures stood at US$64.15 a barrel, up US$0.25 or 0.39%, while WTI futures were at US$59.73, down US$0.63 or 1.04%.

Kazakh producer Tengizchevroil, led by Chevron, said on Monday (Jan 19) it had temporarily halted production at the Tengiz and Korolev fields due to an issue with the power distribution system. Sources said the Tengiz field could remain offline for another 7 to 10 days, reducing exports via the CPC (Caspian Pipeline Consortium) pipeline.

Ajay Parmar, Head of Energy & Refining at ICIS, said Tengiz is among the world’s largest oilfields, meaning the outage is likely to disrupt supply flows. However, he added the interruption appears temporary, and if tariff rhetoric continues to intensify, prices could ease.

Trump’s tariff threats remained a key market focus, adding downside risk to oil because tariffs could slow global growth and curb demand. Still, a weaker U.S. dollar offered some support, as dollar depreciation lowers the effective purchasing cost of dollar-priced crude and can stimulate demand.