Gold prices surged to a record high above $4,800 an ounce on January 21, supported by strong safe-haven demand and a softer dollar.
Spot gold rose 1.2% to $4,821.26 an ounce by 02:26 GMT after reaching a session peak of $4,843.67. U.S. gold futures for February delivery gained 1% to $4,813.50 an ounce.
According to Reuters, the rally reflected growing unease over Washington’s recent actions. The rise in gold prices followed a loss of confidence in the U.S. linked to tariff threats against Europe and increased pressure surrounding Greenland.
Markets were reacting to fears of escalating global tensions. Investors were selling the dollar and longer-dated U.S. Treasuries and turning to gold instead, as confidence in the metal currently outweighs confidence in the U.S. currency.
The dollar hovered near three-week lows against the euro and Swiss franc. Asian equities fell for a third straight session, while the recent sell-off in global bond markets appeared to slow.
A weaker dollar typically supports demand for dollar-priced metals by making them cheaper for overseas buyers.
The Federal Reserve is widely expected to keep interest rates unchanged at its January 27-28 meeting despite Trump’s calls for cuts. Gold, which does not yield interest, tends to benefit from low-rate environments.
Elsewhere, spot silver fell 1% to $93.59 an ounce after hitting a record high of $95.87 on Tuesday. Platinum slipped 0.7% to $2,445.96 after earlier touching a record $2,511.80, while palladium eased 0.5% to $1,857.19 an ounce.
Kursiv also reports that gold futures for February delivery on the Comex exchange rose above $4,700 per troy ounce on January 20.
