Gold prices rallied sharply on Wednesday, setting new record highs and moving closer to the $4,900 an ounce mark, as escalating tensions surrounding Greenland and renewed trade frictions unsettled global markets and pushed investors toward safe-haven assets.
Spot gold rose 2.3% to $4,872.13 an ounce by 01:13 ET (06:13 GMT), after touching a fresh all-time peak of $4,878.30 earlier in the session. U.S. gold futures also jumped 2.4%, reaching a record $4,880.50 an ounce.
Gold supported by US–EU tensions over Greenland
Gold has now gained more than 6% so far this week, including Wednesday’s advance. The latest leg higher follows continued strain in relations between the United States and Europe over Greenland’s strategic importance.
U.S. President Donald Trump has insisted there is “no going back” on Greenland, citing Arctic security concerns, and has threatened to impose tariffs on European countries, adding to existing anxieties around global trade.
French President Emmanuel Macron responded by saying Europe would not bow to “bullies,” emphasizing that respect and cooperation — rather than coercion — should guide relations between allies. His comments, made on the sidelines of the World Economic Forum in Davos, highlighted growing unease in Europe over Washington’s rhetoric and trade threats linked to the Greenland issue.
Trump later attempted to reassure markets, saying the U.S. was working on the matter and seeking an outcome that would satisfy NATO, though investor caution remained elevated.
Weaker dollar adds further momentum
Additional support for gold came from a softer U.S. dollar, which fell about 0.8% on Tuesday to its lowest level in two weeks. The U.S. Dollar Index was down a further 0.2% during Asian trading on Wednesday.
A weaker dollar typically boosts demand for gold by making it cheaper for buyers using other currencies, increasing the appeal of the non-yielding metal.
Elsewhere in the metals market, silver edged higher to $94.75 an ounce after hitting a record $95.87 on Tuesday. Platinum climbed to a new all-time high of $2,519.51 an ounce before paring gains to trade 0.2% higher at $2,467.90.
Copper prices also advanced, with benchmark London Metal Exchange futures up 1.3% at $12,944.20 a tonne, while U.S. copper futures rose 1% to $5.88 a pound.