Gold exceeds the $4,800 barrier for the first time

Gold rose to a new record high, exceeding the $4,800 barrier, today, supported by increased demand for safe havens and a decline in the dollar as geopolitical tensions escalated after the United States and its NATO allies exchanged threats to take action over President Donald Trump’s attempt to seize Greenland.

Gold in spot transactions increased 1.2 percent to $4,818.03 per ounce by 01:25 GMT, after touching a record level of $4,836.24 earlier in the session.

US gold futures for February delivery rose 1 percent to $4,813.50 an ounce.

Trump said yesterday, Tuesday, that he “will not back down” from his goal of controlling Greenland, and refused to rule out forcefully seizing the Arctic island.

He added: “I think we will work on something that will make NATO very happy and very happy, but we need it (Greenland) for security purposes,” noting that the alliance will not be very strong without the United States.

The dollar fell near its lowest levels in three weeks against the euro and the Swiss franc, today, after the White House’s threats regarding Greenland caused a widespread selling wave of US assets.

It is widely expected that the Federal Reserve (the US central bank) will keep interest rates unchanged at its meeting, which will be held on January 27 and 28, despite Trump’s calls to reduce them.

Gold, which does not yield a yield, usually rises in a low interest rate environment.

Silver rose in spot transactions 0.1 percent to $94.68 per ounce, after hitting a record high of $95.87 yesterday, Tuesday.

Platinum in spot transactions increased 0.9 percent to $2,485.50 per ounce after hitting a record level of $2,511.80 earlier in the day, while palladium rose 0.4 percent to $1,873.18.