Gold Climbs to Record $4,800 as Greenland Dispute Fuels Safe-Haven Rally

TLDR

• Gold surged past $4,800 per ounce on Wednesday, marking a new record high driven by Greenland-related tensions and trade war fears
• Goldman Sachs projects gold will reach $4,900 by year-end, while other analysts forecast prices climbing above $5,000 to as high as $7,150
• The U.S. dollar fell 0.8% to a two-week low, making gold more affordable for international buyers and increasing demand
• President Trump’s tariff threats against Europe over Greenland sparked safe-haven buying, with gold up more than 6% this week
• Private investors and institutions are diversifying into gold through ETFs, shifting from primarily central bank purchases in previous years

Gold prices broke through $4,800 per ounce on Wednesday, setting a new all-time high. The precious metal reached $4,878.30 during intraday trading before settling at $4,872.13, up 2.3%.

U.S. gold futures also climbed to historic levels at $4,880.50 per ounce. The rally marks a 6% gain for gold this week alone.

French President Emmanuel Macron pushed back against the rhetoric at the World Economic Forum in Davos. He said Europe would not bow to “bullies” and that cooperation should define relations between allies.

The Greenland dispute has rattled global markets and sent investors seeking safe assets. Gold has historically served as a hedge during periods of geopolitical uncertainty.

Dollar Weakness Adds Fuel to Rally

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

The U.S. Dollar Index dropped another 0.2% during Asian trading hours Wednesday. When the dollar weakens, gold becomes cheaper for buyers using other currencies.

This currency dynamic typically increases demand for the non-yielding metal. The combination of geopolitical tensions and dollar weakness created ideal conditions for gold’s rally.

Analysts Raise Price Targets

Goldman Sachs reinforced its bullish stance on gold, calling it the bank’s highest-conviction trade. Daan Struyven, co-head of global commodities research at Goldman Sachs, said the bank expects gold to reach $4,900 by December.

The investment bank noted a shift in buyer composition. Central banks drove gold purchases in 2023 and 2024, but private-sector demand accelerated in 2025.

Demand is coming from private wealth firms, asset managers, hedge funds and pension funds. The bank noted difficulty separating retail from institutional buying.

Price Forecasts Range to $7,150

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

Julia Du from ICBC Standard Bank sees gold reaching $7,150. Nicky Shiels of MKS PAMP projects prices hitting $5,400, representing a 30% gain for the year.

Shiels argued that geopolitical tensions remain a driving force. Recent U.S. actions in Venezuela and the Greenland dispute have intensified safe-haven demand.

Gold’s 2025 performance set the stage for this year’s rally. The metal gained 60% last year, building on strong gains in 2023 and 2024.

Other precious metals joined the rally. Silver traded at $94.75 per ounce after hitting a record $95.87 on Tuesday.

Platinum reached an all-time high of $2,519.51 per ounce on Wednesday. It later traded at $2,467.90, up 0.2% for the session.

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