Gold Breaks $4,800, Investors Flee for Safe Assets
Gold prices surged to a record high above $4,800 per ounce on Wednesday, as investors turned to the precious metal as a safe haven. Spot gold rose 2.6% to $4,885.11 per ounce, after earlier reaching $4,888.07. US gold futures for February delivery also rose 2.6% to $4,888.20 per ounce. This surge followed a massive sell-off in US assets amid escalating tensions between the US and NATO over Greenland.
Market analyst Kyle Rodda said gold's rise reflects investor concerns about global geopolitical tensions and declining confidence in the US. "Trump's moves to impose tariffs on European countries and pressure regarding Greenland have investors seeking safety in gold," he said.
US President Donald Trump's statement asserting there is "no turning back" regarding Greenland and French President Emmanuel Macron's criticism of US tariff threats have further fueled market uncertainty. Investors view these tensions as a risk, prompting them to avoid riskier assets, leading gold prices to continue rising.
In addition to geopolitical factors, the weakening US dollar also supported gold's rise. The dollar index fell to its lowest level in almost a month, making dollar-priced gold cheaper for foreign buyers. Analysts also believe the combination of rising global debt and economic uncertainty is strengthening demand for gold as a safe haven asset.
Meanwhile, other precious metals moved mixed. Spot silver fell 0.5% to $95.03 per ounce after previously hitting a record $95.87, platinum fell 0.5% to $2,473.80 per ounce, while palladium edged up 0.1% to $1,881.57 per ounce. Despite the weakening of several metals, gold's upward trend remains dominant amidst global market turmoil. (az)
Source: Newsmaker.id
