Safe-Haven Demand Lifts Gold to Record High
Gold prices have increased massively and now historic high. The metal crossed the 4800 US Dollar for the first time in decades.Strong safe-haven buying drove the gains. A weaker US dollar further fueled the rally.
Spot gold climbed 1.2% to $4,821.26 per ounce in early Asian trade. It earlier touched a record high of $4,843.67. US gold futures for February delivery rose 1% to $4,813.50 per ounce.
Investors moved quickly into gold as global uncertainty intensified. Concerns grew after renewed political tensions between the United States and Europe. Markets reacted sharply to comments from US President Donald Trump regarding Greenland.
Analysts said gold benefited from rising geopolitical risk. The metal is often seen as a hedge during political and economic turmoil. Demand strengthened as confidence in traditional assets weakened.
Trump’s Greenland Push Rattles Markets and Europe
Market sentiment turned cautious after Trump reaffirmed his goal of taking control of Greenland. Over the weekend, he said there was “no going back” on the issue. He did not rule out the use of force. He also criticised NATO allies.
The remarks alarmed European leaders and investors. Fears of a renewed US-EU trade conflict quickly surfaced. Trump also threatened steep tariffs on European countries.
Later, Trump attempted to ease concerns. He said negotiations would lead to a solution acceptable to NATO and the US. However, the reassurance failed to calm markets.
European leaders responded firmly. French President Emmanuel Macron said Europe would not be intimidated. He warned against bullying tactics and rejected threats tied to Greenland.
Analysts noted that investor trust in US policy stability has weakened. The uncertainty has pushed investors away from the dollar and US Treasuries. Gold has emerged as the preferred alternative.
“There is greater confidence in gold than in the US currency right now,” said market analyst Rodda. He pointed to selling pressure at the long end of the US bond market.
Dollar Weakness and Fed Outlook Support Bullion
The US dollar hovered near three-week lows against the euro and Swiss franc. Dollar weakness made gold cheaper for overseas buyers. This further boosted demand.
Asian stock markets extended losses for a third straight session. Risk appetite remained fragile across global markets. Investors continued shifting funds into defensive assets.
Attention is also focused on the US Federal Reserve. The central bank is widely expected to keep interest rates unchanged at its January 27–28 meeting. This is despite repeated calls from Trump for rate cuts.
Low interest rate expectations tend to support non-yielding assets like gold. With no income loss from holding bullion, investors see gold as more attractive.
Other precious metals showed mixed performance. Spot silver fell 1% to $93.59 per ounce. It had hit a record $95.87 in the previous session.
Platinum declined 0.7% to $2,445.96 per ounce. Prices earlier reached a record $2,511.80. Palladium eased 0.5% to $1,857.19 per ounce.
Market watchers expect volatility to continue. Political risks and currency movements remain key drivers. For now, gold continues to shine as the world’s top safe-haven asset.
