Gold Breaks above $4,800/oz as Geopolitical Tensions Spur Safe-haven Bids

22/01/2026 04:37 AST

Gold surpassed $4,800 an ?ounce for the first time on Wednesday as geopolitical tensions including US President Donald Trump's bid to control Greenland drove safe-haven demand.

Spot gold was up 2.1% at $4,865 per ounce by 9:30 a.m. ET (1430 GMT), after rising as far as $4,887.82 earlier in the session. US gold futures for February delivery climbed nearly 2% to $4,858.3 per ounce, Reuters reported.

"There's a ?bit of fear ?of missing out on this ?trade ?and ?I think ?given the geopolitical situation in the world, it's a perfect storm for higher gold and higher silver prices right now," said RJO Futures senior market strategist Bob Haberkorn. US stocks staged a modest recovery after the sharpest equities selloff in three months, as investors digested Trump's speech in Davos, Switzerland, in ?which he said Europe is headed in the wrong direction but ruled out ?using force to acquire Greenland. Meanwhile, ?the US Supreme Court ?is set to consider Trump's unprecedented attempt to fire Federal ?Reserve Governor Lisa Cook, in a case that tests the central bank's independence. The Fed is likely to hold its key interest rate through this quarter and possibly until Chair Jerome Powell's ?tenure ends in May, according to a majority of economists polled by Reuters.

Lower interest rates are ?favourable for non-yielding gold.

Spot silver was steady at $94.61 an ounce, after hitting a record high of $95.87 on Tuesday, driven by supply tightness and increasing industrial demand.

"Silver's rise to a three-digit number is looking quite possible given the price momentum we are seeing, but it will not be a one-way move. There could be some correction in prices and volatility can be higher," said Soni Kumari, ANZ commodity strategist.

Spot platinum was 1% higher at $2,487.05 per ounce after hitting a record $2,511.80 ?earlier in the day. Palladium was down 0.9% at $1,849.25, after touching its highest in a week.

Asharq Al Awsat