Gold Near Records as Trump Greenland Threat Sparks Safe-Haven Rally
Gold Near Records as Trump Greenland Threat Sparks Safe-Haven Rally
Gold climbs toward a record as threats over Greenland push investors into safe havens while the dollar slips and markets reassess tariffs.
Gold and silver prices hovered near record highs as threats by the U.S. to acquire Greenland rattled global markets, sending investors scrambling for safe-haven assets. Spot gold held around $4,671.54 per ounce, just shy of an all-time high touched recently, while U.S. gold futures for February delivery rose about 1.8% to roughly $4,676.80 per ounce. Spot silver weakened about 1.2% to $93.53 an ounce after briefly hitting a record $94.72, underscoring the volatility that comes with elevated uncertainty around trade and geopolitics.
Strong demand for gold-backed exchange-traded funds continued to reflect the shift toward bullion as a risk hedge, with Gold Trust holdings increasing about 1.01% to 1,085.67 metric tons on Friday. Investors also sought refuge in other traditional safe havens such as the Japanese yen and the Swiss franc, while the dollar slipped to its lowest level in a week amid the broad market pullback and growing tariff concerns.
The backdrop includes a global economy that the IMF still views as resilient enough to push its 2026 growth forecast higher, even as U.S. tariffs and trade tensions linger. In the background, China’s economy grew 5.0% last year, meeting its target while capturing a record share of global demand for goods to offset some weakness at home, a strategy that has helped blunt the impact of tariffs but remains hard to sustain over time. China left benchmark loan prime rates unchanged for the eighth consecutive month, aligning with market expectations.
Away from the price charts, the market is watching a potential test of policy independence in the United States, with debates over how monetary and fiscal policies will adapt as tariffs persist and markets navigate heightened volatility. As traders weigh whether gold can sustain a move toward fresh highs, the broader questions remain: how long the safe-haven mood lasts, and what signals from major economies will mean for the next leg in the gold rally.
