Gold prices surged to an all-time high above $4,800 per ounce on Wednesday, driven by strong safe-haven demand and a weaker U.S. dollar, as escalating political tensions between the United States and Europe over Greenland unsettled global markets.
Spot gold climbed 1.2% to $4,821.26 per ounce by 02:26 GMT, after hitting a record intraday high of $4,843.67. Meanwhile, U.S. gold futures for February delivery rose 1% to $4,813.50 per ounce.
Trump’s Greenland Push Sparks Market Anxiety
Investor sentiment weakened sharply after President Donald Trump renewed his push for U.S. control of Greenland, reigniting fears of a fresh trade war with Europe.
Over the weekend, Trump said there was “no going back” on his goal to take control of the Arctic island and did not rule out the use of force, while also criticizing NATO allies. He later attempted to soften his stance, saying:
“We will work something out where NATO is going to be very happy and where we’re going to be very happy.”
However, European leaders responded firmly. French President Emmanuel Macron warned that Europe would not bow to pressure, stating the continent would not give in to bullies or intimidation, especially amid threats of steep U.S. tariffs if Europe resisted a takeover of Greenland.
Investors Flee Dollar, Turn to Gold
Market analysts noted a shift away from the U.S. dollar and Treasuries toward gold, reflecting growing uncertainty over U.S. policy direction.
“There is greater confidence in gold than in the U.S. currency right now,” said analyst Rodda, pointing to selling pressure at the long end of the U.S. bond market.
The U.S. dollar hovered near three-week lows against the euro and Swiss franc, making dollar-priced commodities more attractive to overseas buyers. At the same time, Asian stock markets extended losses for a third consecutive session, further supporting demand for safe-haven assets.
Fed Rate Outlook Supports Bullion
Gold also benefited from expectations that the Federal Reserve will keep interest rates unchanged at its January 27–28 meeting, despite President Trump’s public calls for rate cuts.
Non-yielding assets like gold typically perform well in low-interest-rate environments, as the opportunity cost of holding bullion declines.
Other Precious Metals Mixed
Performance among other precious metals was mixed:
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Spot silver fell 1% to $93.59 per ounce, after touching a record $95.87 on Tuesday
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Platinum slipped 0.7% to $2,445.96, after an earlier record high of $2,511.80
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Palladium eased 0.5% to $1,857.19 per ounce
