Gold is hovering near a record level

Investors traded gold and silver near record high levels today, after US President Donald Trump’s threats to annex Greenland raised concerns in the markets and negatively affected market sentiment, leading to increased demand for safe haven assets.

Gold settled in spot transactions at $4,671.54 per ounce by 01:18 GMT, after recording its highest level ever at $4,689.39 in the previous session.

US gold futures for February delivery rose 1.8 percent to $4,676.80 an ounce.

Silver fell in spot transactions by 1.2 percent to $93.53 per ounce, after hitting a record high of $94.72 earlier in the session.

Trump intensified his efforts to seize sovereignty over Greenland from Denmark, a member of NATO, which prompted the European Union to consider responding with its own measures.

The dollar fell to its lowest levels in a week on Tuesday, after threats from the White House to the European Union regarding the future of Greenland led to a widespread selling wave in US stocks and government bonds.

Investors are turning to safe haven assets such as gold, the yen, and the Swiss franc in search of a refuge from the risks of the trade war.

But they fear the return of volatility caused by the trade war in 2025, which did not subside until agreements were reached on tariffs in the middle of the year.

The International Monetary Fund again raised its global growth forecasts for 2026 on Monday, as companies and economies adjust to US tariffs.

The Chinese economy grew 5.0 percent last year, achieving the government’s goal by seizing a record share of global demand for goods to compensate for weak domestic consumption.

This strategy has helped limit the impact of US tariffs, but is increasingly difficult to sustain.

As for other precious metals, platinum in spot transactions fell 0.6 percent to $2,359.45 per ounce, while palladium fell 1.3 percent to $1,817.44.