Gold hits record above US$4,800 as US selloff deepens on Greenland
Gold prices leapt to fresh all-time highs on Wednesday (January 21), punching through the US$4,800 mark as investors rushed into the safe-haven metal after a sweeping “Sell America” move hit the dollar, US equities and Treasuries amid growing friction between Washington and NATO over Greenland.
Spot gold was up 2.6% at US$4,885.11 an ounce by 0633 GMT, having touched a record US$4,887.82 earlier in the session.
US February gold futures also gained 2.6% to US$4,888.20.
Analysts said the surge reflected a loss of confidence in the United States, after US President Donald Trump renewed pressure on Europe with tariff threats and doubled down on his push to take control of Greenland.
Kyle Rodda, a senior market analyst at Capital.com, said the rally in bullion signalled rising investor anxiety over geopolitical tensions.
Trump said on Tuesday there was “no going back” on his goal to control the Arctic island, declining to rule out the use of force and criticising NATO allies.
He later suggested a deal was possible, saying both NATO and the United States would end up “very happy”.
In Europe, French President Emmanuel Macron delivered a sharp rebuke at the World Economic Forum in Davos, saying Europe would not be intimidated or yield to bullies, in reference to Trump’s tariff threats.
Nicholas Frappell, global head of institutional markets at ABC Refinery, said the move above US$4,800 reinforced market conviction that investors were reluctant to take profits ahead of the US$5,000 level.
He added that gold was also being supported by rising debt, a softer dollar and geopolitical uncertainty.
The US dollar index hovered near a one-month low after the White House’s Greenland stance helped trigger broad selling in US assets.
A weaker dollar typically boosts demand for dollar-priced commodities by making them cheaper for overseas buyers.
Elsewhere, spot silver slipped 0.5% to US$95.03 an ounce after hitting a record US$95.87 on Tuesday. Spot platinum fell 0.5% to US$2,473.80 after earlier touching a record US$2,511.80, while palladium edged up 0.1% to US$1,881.57.
Reuters
