Gold Breaks $4,700 Again: "Greenland Drama" Sparks Safe Havens
Gold prices hit a new record in Asian trading on Tuesday, breaking through the psychological level of $4,700 per ounce. The market became increasingly risk-off as concerns about US demands regarding Greenland persisted, prompting traders to return to safe-haven assets.
Futures in New York climb 2.9% to $4,725.80 a troy ounce, having reached $4,731.30 earlier in the session. The dollar index is down 0.7% to 98.70, making bullion cheaper for buyers using other currencies. Meanwhile, silver rises 6.7% to $94.45 an ounce.
This surge was fueled by a combination of geopolitical uncertainty and pressure on the US dollar. Trump's unclear stance on Greenland prompted market participants to seek safe havens, while the dollar weakened as investors sold the greenback amid tariff threats—a situation that typically provides additional fuel for precious metals.
Trump is also scheduled to attend the World Economic Forum in Davos, and markets await his meetings with European leaders. Amid tense diplomacy, analysts believe that as US foreign policy becomes increasingly transactional and unpredictable, markets are likely to be encouraged to diversify away from the dollar—and gold is benefiting from the prolonged uncertainty.
While gold remains strong, silver is starting to cool off after a sharp rally. Spot silver prices edged down 0.1% to $94.2890/oz after hitting a record high the previous day. Platinum also weakened 0.6% to $2,361.47/oz, indicating some market participants are starting to take profits in other metals.
Beyond precious metals, industrial metals have also been impacted by the flow into physical assets. Benchmark copper in London fell 0.4% to $12,927.58/ton, but remained near its latest high—a sign that demand for physical assets remains strong despite increased volatility. (yds)
Source: Newsmaker.id
