On Wednesday, gold prices reached new peaks, crossing the $4,800 per ounce mark as geopolitical unease associated with Greenland's strategic value and fresh trade disputes unsettled global financial markets. By 08:35 ET (13:35 GMT), spot gold surged by 2.3% to reach $4,873.30 per ounce, following an intraday record high of $4,888.13. Similarly, US gold futures advanced 2.3% to $4,876.60 per ounce, descending slightly from the all-time peak of $4,890.35.
Gold has gained more than 5% throughout the week, spurred by tensions between the United States and European nations over Greenland. US President Donald Trump reiterated that there was "no going back" on issues related to Greenland, citing Arctic security concerns, while threatening tariffs against European countries. This rhetoric has injected additional volatility into markets already wary about global trade dynamics.
In response, French President Emmanuel Macron condemned such pressure tactics, emphasizing that dealings among allies should rest on respect and cooperation rather than intimidation. These comments, delivered during the World Economic Forum in Davos, highlight growing apprehensions within Europe about Washington's aggressive stance relating to the Greenland dispute. Although President Trump attempted to ease concerns by assuring that the US was working toward a NATO-satisfactory resolution, investor unease persisted.
Market analysts polled by the London Bullion Market Association are anticipating gold prices to climb past $5,000 per ounce by the end of the year. Such expectations are supported by forecasts of declining US real interest rates, ongoing Federal Reserve monetary easing, and continuous central bank diversification away from the US dollar.
Pressure on the dollar has also bolstered gold's appeal, as the currency slid to a two-week low on Tuesday. A weaker dollar typically reduces the price burden for holders of other currencies, thereby raising demand for the non-yielding precious metal.
Other metals exhibited mixed movements: silver retreated slightly to $94.403 per ounce after touching a record $95.87 on Tuesday, and platinum reached an all-time high of $2,519.51 per ounce before easing to trade 1.5% higher at $2,488.40. Copper prices showed an upward trend with London Metal Exchange benchmark futures rising 1% to $12,903 per ton, while US copper futures gained 0.7% to $5.8505 per pound.