Gold prices jumped to a record high above $4,800 per ounce on Wednesday, supported by strong safe-haven demand and a weaker U.S. dollar as President Donald Trump’s push to take control of Greenland rattled global markets and raised fears of a renewed trade war with Europe.
Spot gold rose 1.2% to $4,821.26 per ounce by 0226 GMT, after touching a record high of $4,843.67 earlier in the session. U.S. gold futures for February delivery climbed 1% to $4,813.50 per ounce.
Analysts said investor confidence in the U.S. has weakened following Trump’s latest moves to impose tariffs on European countries and escalate pressure over Greenland. Over the weekend, Trump said there was “no going back” on his goal to control the Arctic island and did not rule out the use of force, while also criticizing NATO allies.
He later sought to soften the tone, 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 pushed back strongly. French President Emmanuel Macron said Europe would not give in to bullies or be intimidated, criticizing Trump’s threats of steep tariffs if Europe did not allow a U.S. takeover of Greenland.
Market analysts said investors were moving out of the dollar and U.S. Treasuries and into gold amid growing uncertainty. “There is greater confidence in gold than in the U.S. currency right now,” said analyst Rodda, noting selling pressure at the long end of the bond market.
The dollar hovered near three-week lows against the euro and Swiss franc, while Asian stocks extended losses for a third straight session. A weaker dollar makes dollar-priced metals cheaper for overseas buyers, boosting demand.
Meanwhile, the Federal Reserve is widely expected to keep interest rates unchanged at its January 27–28 meeting, despite Trump’s calls for cuts. Non-yielding assets like gold typically benefit in low-interest-rate environments.
Other precious metals were mixed. Spot silver slipped 1% to $93.59 per ounce after hitting a record $95.87 on Tuesday. Platinum fell 0.7% to $2,445.96 after earlier touching a record $2,511.80, while palladium eased 0.5% to $1,857.19 per ounce.
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