Gold scales fresh all-time highs above $4,800 an ounce as investors rush to safe-haven assets amid escalating US–Europe tensions over Greenland, a weakening dollar, and mounting concerns over the independence of the Federal Reserve under President Donald Trump
Gold prices extended their blistering rally on Wednesday, smashing through the $4,800 per-ounce mark for the first time as investors scrambled for safety amid escalating friction between the United States and NATO allies over Greenland.
Spot gold jumped 2.1 per cent to $4,861.91 an ounce, after touching an intraday record of $4,887.82 earlier in the session. US gold futures for February delivery rose in tandem, gaining 2.1 per cent to $4,864.80 an ounce.
Greenland tensions unsettle investors
The latest surge marks gold’s 11th record high so far in 2026, underscoring the metal’s status as the asset of choice in a world gripped by geopolitical shocks, policy uncertainty and fears of institutional erosion in the United States.
“There continues to be a myriad of factors boosting bullion, not least simply its safe-haven quality,” Jamie Dutta, market analyst at Nemo.money, told Reuters. “The Greenland crisis is front and centre, with President Trump expected to deliver his Davos speech later today.”
On Tuesday, US President Donald Trump reiterated his ambition to gain control of Greenland, refusing to rule out the use of force to take over the strategically located Arctic island. The remarks have alarmed European leaders and intensified transatlantic tensions, with Trump widely expected to double down on his position during the World Economic Forum in Davos.
Denmark, which governs Greenland, has flatly rejected the idea. Danish Prime Minister Mette Frederiksen said she would not yield to US pressure or abandon the territory, a stance that has found support across Europe.
Markets reacted sharply to the standoff. The dollar index hovered near a two-week low, weighed down by a broad sell-off in US assets sparked by White House threats over Greenland. Wall Street stocks and US Treasury bonds also came under pressure, reinforcing the flight into gold. A weaker dollar typically boosts demand for dollar-priced commodities by making them cheaper for overseas buyers.
Fed independence fears add to bullion appeal
Beyond geopolitics, investors are also bracing for a potentially explosive US Supreme Court verdict on the legality of Trump’s attempt to remove Federal Reserve Governor Lisa Cook. The case has amplified concerns about the independence of the US central bank, further strengthening the appeal of gold as a hedge against policy risk and inflation.
“We are looking for gold to punch through $5,000/oz as investors continue to seek inflation-proof, safe-haven assets,” John Meyer, analyst at SP Angel, told Reuters. However, he cautioned that the rally could lose steam if exchange-traded fund (ETF) inflows begin to fade.
Silver and platinum near record highs
Silver, too, remained near record levels. Spot silver rose 0.2 per cent to $94.71 an ounce, after hitting an all-time high of $95.87 on Tuesday. The metal has been propelled by a combination of tight physical supply, strong industrial demand and safe-haven buying.
“Sustained uncertainty and the debasement trade are bidding up all precious metals including silver,” Dutta said, adding that speculative flows were also pushing prices higher.
Among other precious metals, spot platinum edged up 0.1 per cent to $2,464.79 an ounce, having touched a record $2,511.80 earlier in the day. Palladium, however, slipped 0.6 per cent to $1,854.35 after hitting a one-week high.
With geopolitical tensions mounting, faith in US institutions under scrutiny and the dollar under pressure, market participants say the path of least resistance for gold remains higher — at least for now.
With inputs from agencies.
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