Gold surged to a new all-time high above $4,800 per ounce on Wednesday as investors bought the metal as a safe haven after a broad selloff in U.S. assets tied to tensions between the U.S. and NATO over Greenland.
Spot gold rose 2.6% to $4,885.11 per ounce by 0633 GMT after touching a record $4,887.82 earlier in the session.
U.S. gold futures for February delivery also gained 2.6% to $4,888.20.
Tariffs and Greenland drive haven demand
Kyle Rodda, senior market analyst at Capital.com, said the move reflected a hit to confidence in the U.S. after President Donald Trump threatened tariffs on European countries and intensified efforts to take control of Greenland.
Rodda said:
“It’s the loss of trust in the U.S. caused by Trump’s moves over the weekend to tariff European countries and increase coercion in trying to take Greenland. (The move in gold) reflects fears about global geopolitical (tensions).”
On Tuesday, Trump said there was “no going back” on his goal to control Greenland and did not rule out taking the island by force.
He later said:
“We will work something out where NATO is going to be very happy and where we’re going to be very happy.”
Dollar weakness adds support
Nicholas Frappell, global head of institutional markets at ABC Refinery, said the break above $4,800 reinforced reluctance to sell ahead of $5,000.
He cited rising debt, a weakening dollar and geopolitical uncertainty.
The dollar index was near a one-month low after White House threats over Greenland triggered a selloff across U.S. assets.
A weaker dollar can make dollar-priced metals cheaper for overseas buyers.
Silver and platinum pull back
Spot silver fell 0.5% to $95.03 an ounce after hitting a record $95.87 on Tuesday.
Spot platinum slipped 0.5% to $2,473.80 after earlier touching a record $2,511.80.
Palladium edged up 0.1% to $1,881.57.
