Gold prices climbed to an all-time high on Wednesday, rising above the $4,800 mark per ounce as investors sought safe-haven assets amid heightened geopolitical uncertainty and a weaker US dollar.
Spot gold advanced 1.2% to $4,821.26 per ounce by 0226 GMT, after touching a record peak of $4,843.67 earlier in the session. Meanwhile, US gold futures for February delivery gained 1% to $4,813.50 per ounce.
Market sentiment was shaken by renewed concerns over global trade and security following comments by US President Donald Trump regarding Greenland. His stance raised fears of escalating trade tensions with Europe and potential strain on the NATO alliance. Trump said there was “no going back” on his objective to control Greenland, declining to rule out the use of force, before later stating that a resolution could be reached that would satisfy both NATO and the United States.
European leaders responded sharply, with French President Emmanuel Macron warning that Europe would not be intimidated, criticizing Trump’s threat of imposing steep tariffs if European nations resisted his plans.
Analysts noted that the uncertainty has undermined confidence in the US currency, prompting investors to move away from the dollar and long-term US Treasuries in favor of gold. The dollar hovered near three-week lows against the euro and Swiss franc, while Asian equities extended losses for a third consecutive session. A weaker dollar has also made dollar-priced metals more attractive to international buyers.
The US Federal Reserve is widely expected to keep interest rates unchanged at its January 27–28 meeting, despite pressure from Trump to lower rates. Gold, which does not yield interest, typically benefits in lower-rate environments.
Elsewhere in the precious metals market, spot silver slipped 1% to $93.59 per ounce after reaching a record high of $95.87 on Tuesday. Platinum fell 0.7% to $2,445.96 after earlier hitting an all-time high of $2,511.80, while palladium declined 0.5% to $1,857.19 per ounce.
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