Gold crosses $4,800 for the first time as US, EU spar over Greenland

January, 21, 2026

(Reuters) - Gold prices surged to a record high above $4,800 per ounce on Wednesday, buoyed by safe-haven demand and a softer ‌dollar as U.S. President Donald Trump's pursuit of Greenland threatened to reignite a trade war with Europe and upend the NATO alliance.

Spot gold rose 1.2% to $4,821.26 per ounce by 0226 GMT, after scaling a record $4,843.67 earlier in the session. U.S. gold futures for February delivery climbed 1% to $4,813.50 ‌per ounce.

"It's the loss of trust in the U.S. caused by Trump's moves over the weekend to tariff European countries and increase his coercion in trying to take Greenland. (The move in gold) reflects fears about global geopolitical (tensions)," said Kyle Rodda, a senior ‍market analyst at Capital.com.

On Tuesday, Trump said there was "no going back" on his goal to control Greenland, refusing to rule out taking the Arctic island by force and lashing out at NATO allies.

He later said, "We will ⁠work something out where NATO is going to be very happy and where we're ‍going to be very happy."

Meanwhile, French President Emmanuel Macron said Europe would not give in to bullies or ‌be ‌intimidated, in a scathing criticism of Trump's threat of steep tariffs at Davos if Europe does not let him take over Greenland.

"Obviously investors are selling the dollar, they're selling treasuries, particularly at the long-end, and buying gold instead because there is greater confidence in gold than ⁠in the U.S. (currency) right ⁠now," Rodda said.

The dollar languished near three-week lows against the euro and Swiss franc, and Asian stocks extended their losses for a third session, while a global bond rout appeared to slow for now.

A weaker dollar makes ‍greenback-priced metals cheaper for overseas buyers.

The Federal Reserve is broadly expected to maintain interest rates at its January 27-28 meeting despite Trump's calls for cuts. Non-yielding bullion typically performs well in low-interest-rate environments. FEDWATCH

Spot silver fell 1% to $93.59 an ounce, after hitting a record high of $95.87 ‍on Tuesday.

Spot platinum lost 0.7% to $2,445.96 per ounce after hitting a record $2,511.80 earlier in the day, while palladium was down 0.5% to $1,857.19.