Gold Hits Record High Above $4,800 as Greenland Dispute Drives Safe-Haven Demand

TLDR

• Gold hit a fresh record above $4,800 per ounce on Wednesday, driven by safe-haven demand amid tariff threats and trade war concerns
• Analysts surveyed by the London Bullion Market Association expect gold to rise above $5,000 this year, with some forecasting as high as $7,150
• Goldman Sachs calls gold its highest-conviction trade, projecting $4,900 by year-end, citing shifting demand from central banks to private investors
• Geopolitical tensions including U.S. actions on Greenland and threats of European tariffs are fueling the rally
• The weaker U.S. dollar, down 0.8% to a two-week low, is making gold cheaper for international buyers and boosting demand

Gold prices reached a new all-time high above $4,800 per ounce on Wednesday as investors rushed to safe-haven assets. The surge came after President Donald Trump renewed threats of tariffs against European countries over Greenland.

Spot gold jumped 2.3% to $4,872.13 per ounce during trading. The precious metal hit an intraday record of $4,878.30 per ounce before pulling back slightly.

U.S. gold futures climbed 2.4% to $4,880.50 per ounce. Gold prices have now risen more than 6% this week alone.

The rally extends gold’s momentum from 2025, when the metal gained 60% over the year. Silver also saw strong gains in 2025, nearly doubling in price.

French President Emmanuel Macron responded that Europe would not bow to “bullies.” He stressed that respect and cooperation should define relations between allies, not coercion.

Macron made his remarks at the World Economic Forum in Davos. His comments reflected growing concern in Europe over U.S. rhetoric and trade threats.

The U.S. dollar’s weakness provided further support for gold prices. The dollar fell 0.8% on Tuesday to a two-week low.

The U.S. Dollar Index traded 0.2% lower during Asian trading hours on Wednesday. A weaker dollar makes gold less expensive for buyers using other currencies.

Bullish Forecasts from Major Analysts

Goldman Sachs maintained its bullish outlook on gold. The bank called gold its highest-conviction trade for 2026.

Daan Struyven, co-head of global commodities research at Goldman Sachs, said the bank expects gold to reach $4,900 by year-end. He noted that the type of buyer has shifted over the past few years.

Central bank purchases drove gold gains in 2023 and 2024. Private-sector demand accelerated the rally in 2025.

“Private investors are starting to diversify into gold through different channels,” Struyven said in a media briefing. ETF inflows show clear evidence of this shift.

Goldman Sachs said demand came from private wealth firms, asset managers, hedge funds and pension investors. The bank finds it difficult to separate retail demand from institutional flows.

Price Targets Climb Higher

Analysts surveyed by the London Bullion Market Association expect gold to rise above $5,000 this year. The forecasts cite lower U.S. real interest rates and continued Federal Reserve easing.

Central bank diversification away from the dollar remains a key factor. Julia Du, a senior commodities strategist at ICBC Standard Bank, sees prices reaching $7,150.

Nicky Shiels, head of metals strategy at MKS PAMP, expects gold to hit $5,400 this year. She said the current cycle does not resemble a speculative peak.

Shiels projects a 30% gain for gold in 2026. She said geopolitical tensions are not fading into the background.

Recent events including U.S. actions in Venezuela have deepened investors’ flight to gold. The push to assert control over Greenland has added to market uncertainty.

Other precious metals also reached new highs. Silver rose to $94.75 per ounce after hitting a record of $95.87 per ounce on Tuesday.

Platinum reached a record high of $2,519.51 per ounce on Wednesday. It later traded 0.2% higher at $2,467.90 per ounce.

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