Gold prices surged beyond $4,800 an ounce on Wednesday, hitting a fresh record as rising tensions surrounding Greenland and renewed trade disputes unsettled global markets, prompting investors to seek refuge in safe-haven assets.
Spot gold advanced 1.7% to an all-time high of $4,844.39 an ounce by 21:13 ET (02:13 GMT), extending a powerful rally that has seen bullion notch multiple record highs this month.
Meanwhile, U.S. gold futures rose 1.3% to $4,830.04 per ounce. Gold has gained more than 5% so far this week, including Wednesday’s advance, as geopolitical tensions continue to underpin safe-haven demand.
The latest rally comes amid ongoing strain in U.S.–European relations over Greenland’s strategic significance. U.S. President Donald Trump has stated there is “no going back” on Greenland, citing Arctic security concerns, and has warned of potential tariffs on European nations—adding to market anxiety already heightened by global trade risks.
In response, French President Emmanuel Macron said Europe would not yield to “bullies,” emphasising that mutual respect and cooperation—not pressure—should guide relations between allies. Speaking on the sidelines of the World Economic Forum in Davos, Macron’s comments highlighted growing European unease over Washington’s rhetoric and trade threats linked to the Greenland issue.
Although Trump attempted to ease concerns by saying the U.S. was working toward a solution acceptable to NATO, investor caution has persisted.
Demand for gold was further supported by a weaker U.S. dollar, which fell roughly 0.8% on Tuesday to its lowest level in two weeks. The U.S. Dollar Index remained under pressure during Asian trading on Wednesday, slipping a further 0.2%.
A softer dollar typically boosts gold by making the metal more affordable for holders of other currencies, increasing demand for the non-yielding asset.
Elsewhere in the precious metals complex, silver prices dipped slightly to around $93.9 per ounce after reaching a record high of $95.87 per ounce on Tuesday. Platinum also touched a fresh all-time high of $2,519.51 per ounce on Wednesday before giving back gains, last trading about 0.6% lower at $2,450.9 per ounce.
Sources: Investing
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