Gold easily topped $4,800 an ounce for the first time ever early Wednesday, and silver was near a record high as tensions intensified between the U.S. and European allies over President Donald Trump’s attempts to acquire Greenland.
The stock markets dropped precipitously yesterday on President Trump’s tariff threats, but regained some ground this morning after the President told the meeting in Davos that he has ruled out military action to gain ownership of Greenland. After the announcement, the U.S. Dollar regained some value, while the Dow traded 141 points higher, or 0.3%, the S&P 500 gained 0.4%, and the Nasdaq advanced 0.3%. Gold lost a little altitude, but is still well over $4800 an ounce.
Precious metals traditionally attract investors during times of rising geopolitical tensions and economic unrest as a hedge against uncertainty. Haven demand soared amid a broad selloff on U.S. assets amid the straining ties between the U.S. and NATO allies threatened to upend the post-World War II global order.
February gold futures rose 3.7% Tuesday to settle at $4,765.80 an ounce on Comex. Most U.S. financial markets were closed Monday for the Martin Luther King Jr. holiday, so Monday Comex trading settled on Tuesday. Bullion is up 9.8% this month after rising 2% in December and gaining 6.5% in November. It rallied 64% last year. The metal rose 27% in 2024. The February contract is currently up $100.8 (+2.12%) an ounce to $4866.60 and the DG spot price is $4836.80.
March silver futures climbed 6.9% Tuesday to settle at $94.64 an ounce on Comex. The white metal has hit a series of record highs in recent weeks amid surging industrial demand. Silver is up 34% this month after soaring 24% in December and increasing 19% in November. It climbed 141% last year after rising 21% in 2024. The March contract is currently down $0.541 (-0.57%) an ounce to $94.095 and the DG spot price is $93.59.
Trump has threatened over the past few days to impose tariffs on European nations that reject his proposal to acquire Greenland from Denmark, a founding member of the NATO alliance. Global political and economic leaders are set to meet this week in Davos, Switzerland, for the annual World Economic Forum. Trump also plans to unveil his Board of Peace for Gaza at the gathering.
But the president’s plane was forced to return to the U.S. late Tuesday after what was termed a “minor electrical issue.” White House spokeswoman Karoline Leavitt said the president boarded a different plane to make the trip to Switzerland, and arrived in time for his scheduled speech at 2:30 p.m. in Davos, or 8:30 a.m. Washington time.
In addition with the standoff over Greenland, precious metals have attracted haven investors on the U.S. presence in Venezuela and the Caribbean as well as concerns about Federal Reserve independence after the Justice Department’s criminal probe against Federal Reserve Chair Jerome Powell. Powell and Trump have been at odds over whether to lower interest rates.
The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%. About 95% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting next week, according to figures tracked by the CME FedWatch Tool. About 5% expect another 25 basis point cut. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Platinum also climbed to a fresh record. Spot palladium rallied 4% Tuesday to $1,878.00 an ounce. Palladium is up 16% this month after increasing 11% in December and adding 0.5% in November. Palladium gained 74% last year after dropping 17% in 2024. Currently, the DG spot price is up $7.50 an ounce to $1894.00.
Spot platinum increased 5.3% Tuesday to $2,449.00 an ounce. It’s up 21% so far this month after surging 22% in December and climbing 4.7% in November. Platinum increased 122% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $70.10 an ounce to $2533.60.
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