Spot gold jumped 2.1% to $4,862.19 per ounce by 0837 GMT, after earlier reaching an all-time high of $4,887.82. U.S. gold futures for February delivery also rose 2.2% to $4,869.40 per ounce. The rally marks the 11th record high for gold so far in 2026.
Market analysts said the surge reflected mounting geopolitical concerns and a loss of confidence in U.S. policy, following recent moves by former President Donald Trump.
“It’s the loss of trust in the U.S. caused by Trump’s moves over the weekend to tariff European countries and increase coercion in trying to take Greenland,” said Kyle Rodda, senior market analyst at Capital.com. “The move in gold reflects fears about global geopolitical tensions.”
Trump on Tuesday insisted there was “no going back” on his goal to control Greenland, refusing to rule out the use of force and sharply criticizing NATO allies. He later suggested a compromise could be reached, saying the U.S. and NATO would eventually be “very happy.”
French President Emmanuel Macron responded with a stern warning at the World Economic Forum in Davos, saying Europe would not “give in to bullies” or be intimidated, after Trump threatened steep tariffs on European countries.
Analysts said the record gold surge was also supported by a weakening dollar and rising global debt levels.
“Crossing $4,800 just reinforces that people don’t want to sell gold before $5,000,” said Nicholas Frappell, global head of institutional markets at ABC Refinery. “It’s a combination of the traditional supporters for gold, which is rising debt, a weakening dollar and geopolitical uncertainty.”
The dollar index slipped to a near one-month low as White House threats over Greenland triggered a broad selloff in U.S. assets, including stocks and Treasury bonds. A weaker dollar tends to make dollar-priced metals cheaper for overseas buyers, adding further support to bullion.
Other precious metals also saw gains, with spot silver rising 0.4% to $94.96 an ounce after hitting a record $95.87 on Tuesday. Platinum slipped 0.5% to $2,451.15 per ounce after earlier reaching a record $2,511.80, while palladium fell 0.5% to $1,856.98 following a one-week high earlier in the session.