Gold prices surged to fresh record highs on Wednesday, moving closer to the $4,900 per ounce mark as escalating tensions linked to Greenland and renewed global trade frictions unsettled financial markets and fueled demand for safe-haven assets.
Spot gold jumped 2.3% to $4,872.13 an ounce by 01:13 ET (06:13 GMT), after briefly touching a new all-time high of $4,878.30 earlier in the session. U.S. gold futures also rallied, climbing 2.4% to a record $4,880.50 an ounce.
Gold rally fueled by U.S.–Europe tensions over Greenland
Gold prices have now risen more than 6% this week, supported by growing geopolitical uncertainty. The latest surge followed continued strain in relations between the United States and Europe over Greenland’s strategic role.
U.S. President Donald Trump reiterated that there was “no going back” on Greenland, citing security concerns in the Arctic, and renewed threats of tariffs on European countries. The rhetoric has added to investor anxiety at a time when markets are already sensitive to global trade risks.
French President Emmanuel Macron pushed back against the pressure, saying Europe would not yield to “bullies” and emphasizing that cooperation and mutual respect should guide relations between allies. His comments, delivered on the sidelines of the World Economic Forum in Davos, highlighted rising unease in Europe over Washington’s tone and trade threats related to the Greenland dispute.
Although Trump later sought to ease concerns by saying the U.S. was working toward an outcome acceptable to NATO, investor caution remained firmly in place.
Weaker dollar adds further support
Gold’s advance was also underpinned by renewed weakness in the U.S. dollar. The greenback fell roughly 0.8% on Tuesday, slipping to a two-week low, while the U.S. Dollar Index edged another 0.2% lower during Asian trading on Wednesday.
A softer dollar typically boosts demand for gold by making it cheaper for buyers using other currencies, while also enhancing the appeal of the non-yielding metal during periods of uncertainty.
Elsewhere in the metals market, silver edged higher to $94.75 an ounce after hitting a record $95.87 in the previous session. Platinum rose to a new high of $2,519.51 an ounce before paring gains to trade 0.2% higher at $2,467.90.
Industrial metals also advanced, with benchmark copper futures on the London Metal Exchange climbing 1.3% to $12,944.20 a tonne, while U.S. copper futures gained 1% to $5.88 a pound.
