Gold prices surged to fresh record highs during Asian trading on Tuesday, pushing beyond a key psychological level as ongoing uncertainty surrounding U.S. demands over Greenland kept investors firmly in risk-off mode and boosted demand for safe-haven assets.
Both gold and silver had already climbed to unprecedented levels earlier in the week after U.S. President Donald Trump said European countries could face tariffs unless they relinquish Greenland. While silver saw some profit-taking in the latest session, gold continued to attract strong buying interest.
Spot gold rose 0.4% to $4,696.07 an ounce, while February gold futures gained 0.5% to $4,701.96 an ounce by 00:04 ET (05:04 GMT). Intraday, spot prices briefly touched a new record of $4,701.78 an ounce.
Bullion rallies as Trump–Greenland dispute rattles markets
Gold remained well supported as uncertainty over Trump’s intentions regarding Greenland reinforced demand for defensive assets.
The geopolitical unease also weighed on the U.S. dollar, providing additional support for precious metals. On Monday, Trump reiterated his claims over Greenland and, in an interview with NBC News, stopped short of ruling out the use of military force to secure the island.
Market anxiety intensified earlier this year after the United States launched an incursion into Venezuela and captured President Nicolas Maduro. Trump is now set to attend the World Economic Forum in Davos, Switzerland, where he is expected to meet with several European leaders.
“When US foreign policy tilts toward a transactional, unpredictable approach that bypasses multilateral frameworks, it risks undermining policy credibility and encourages diversification away from the USD,” analysts at OCBC wrote.
“In such an environment, precious metals like gold are supported not by extended conflict itself, but by a sustained backdrop of geopolitical uncertainty and policy unpredictability.”
Silver retreats from highs; platinum also softens
Heightened global uncertainty has prompted investors to trim exposure to speculative assets and rotate further into physical stores of value such as gold — a shift that helped drive a broad rally across metals toward the end of 2025.
Silver and platinum had also benefited from that move, but both saw some profit-taking on Tuesday. Spot silver slipped 0.1% to $94.2890 an ounce after hitting a record in the previous session, while spot platinum declined 0.6% to $2,361.47 an ounce.
Industrial metals were likewise influenced by the demand for tangible assets. Benchmark copper futures on the London Metal Exchange eased 0.4% to $12,927.58 a tonne, though prices remained close to recent all-time highs.
Leave a Reply