Gold Breaks $4,700 as Greenland Tensions Drive Investors Toward Safe Havens

Gold prices surged to fresh all-time highs in Asian trading on Tuesday, decisively crossing the $4,700-per-ounce mark as markets remained on edge over escalating geopolitical uncertainty tied to U.S. President Donald Trump’s demands regarding Greenland.

Spot gold rose 0.4% to $4,696.07 an ounce, while February futures climbed 0.5% to $4,701.96. During the session, spot prices briefly touched a new record of $4,701.78.

The rally follows a sharp move earlier this week, when both gold and silver soared after Trump said he would impose tariffs on European nations until they agree to cede Greenland. While silver cooled slightly on Tuesday amid profit-taking, gold remained firmly supported as investors continued to seek shelter from rising political risk.

Demand for bullion has been underpinned by growing unease over Washington’s foreign policy direction. Trump reiterated his claims on Greenland on Monday and declined, in a television interview, to rule out the use of military force. Markets have been particularly sensitive to such rhetoric since the U.S. incursion in Venezuela earlier this year, which resulted in the capture of President Nicolás Maduro and demonstrated Washington’s willingness to act decisively.

The uncertainty has weighed on the U.S. dollar, further boosting precious metals. A softer greenback makes gold more attractive to overseas buyers and amplifies its appeal as a store of value during periods of instability.

Analysts at OCBC noted that an increasingly transactional and unpredictable U.S. foreign policy risks eroding confidence in traditional frameworks and encourages diversification away from the dollar. In such an environment, they argued, gold is supported not by conflict alone but by a persistent backdrop of geopolitical uncertainty and policy unpredictability.

Silver and platinum, which also benefited from the broader rush into physical assets, eased modestly on Tuesday. Spot silver slipped 0.1% to $94.29 after hitting a record in the prior session, while platinum fell 0.6% to $2,361.47.

Industrial metals remained elevated as well, reflecting continued demand for tangible assets. Benchmark copper futures on the London Metal Exchange dipped 0.4% to $12,927.58 a tonne but stayed close to recent record highs.

With Trump set to attend the World Economic Forum in Davos, where he is expected to meet European leaders, markets remain braced for further headlines—keeping gold firmly in focus as the ultimate geopolitical hedge.