Gold prices surged to new record highs on Wednesday, breaking decisively above the $4,800-per-ounce mark as escalating geopolitical tensions tied to Greenland and renewed trade frictions unsettled global markets and pushed investors toward safe-haven assets.
By 08:35 ET (13:35 GMT), spot gold was up 2.3% at $4,873.30 per ounce, after touching a fresh all-time high of $4,888.13 earlier in the session. U.S. gold futures also climbed 2.3% to $4,876.60 per ounce, hovering just below their record peak of $4,890.35.
Gold prices eye $5,000 per ounce this year
Gold has gained more than 5% this week, with the latest rally fueled by ongoing strains between the United States and Europe over Greenland’s strategic importance. U.S. President Donald Trump has reiterated that there is “no going back” on Greenland, citing Arctic security concerns, while also threatening tariffs against European nations—moves that have heightened already fragile market sentiment around global trade.
French President Emmanuel Macron responded by saying Europe would not give in to “bullies,” emphasizing that cooperation and mutual respect, rather than coercion, should guide relations among allies. His comments, delivered on the sidelines of the World Economic Forum in Davos, highlighted growing European unease over Washington’s rhetoric and trade threats linked to the Greenland dispute.
While Trump later attempted to reassure markets by saying the United States was working toward a solution acceptable to NATO, investor caution remained elevated.
Looking ahead, analysts surveyed by the London Bullion Market Association expect gold prices to climb above $5,000 per ounce this year. Their outlook is supported by forecasts for lower U.S. real interest rates, continued easing by the Federal Reserve, and sustained central-bank diversification away from the U.S. dollar.
Weaker dollar adds to gold’s appeal
Gold demand also received a boost from a softer U.S. dollar, which slipped to a two-week low on Tuesday. A weaker dollar typically makes gold more attractive to buyers using other currencies and supports demand for the non-yielding metal.
Elsewhere in the metals market, silver edged slightly lower to $94.403 per ounce, after reaching a record $95.87 on Tuesday. Platinum briefly hit a new all-time high of $2,519.51 per ounce before trimming gains to trade 1.5% higher at $2,488.40.
In industrial metals, London Metal Exchange copper futures rose 1% to $12,903 per ton, while U.S. copper futures gained 0.7% to $5.8505 per pound.
