Gold zooms past $4,800 as Greenland tensions simmer

Gold prices surged to a record ‌above $4,800 per ounce on Wednesday, as investors sought the metal as a safe haven following a broad selloff in US assets amid heightened tensions between the US and NATO over Greenland.

Spot gold climbed 2.1 percent to $4,862.19 per ounce by 0837 GMT, after scaling a record $4,887.82 earlier in ‌the session. US gold futures for February delivery climbed 2.2 percent to $4,869.40 per ​ounce.

"It's the loss of trust in the US caused by Trump's moves over the weekend to tariff European countries and increase 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.

"I think crossing $4,800 just reinforces that people don't want to sell gold before $5,000. It's a combination of the traditional ⁠supporters for gold, which ⁠is rising debt, ​a weakening dollar and geopolitical uncertainty," said Nicholas Frappell, global head of institutional markets at ABC Refinery.

The dollar index languished at a near one-month low after White House threats over Greenland triggered a broad ‍selloff in US assets, from the currency to Wall Street stocks and Treasury bonds.

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