Gold prices surged to a historic all-time high above $4,800 per ounce on Wednesday, driven by intense safe-haven demand amid escalating geopolitical and trade tensions. Spot gold jumped 2.3% to $4,872.13 per ounce during trading, hitting an intraday record of $4,878.30. U.S. gold futures climbed 2.4% to $4,880.50, marking a more than 6% gain for the week alone.
The rally was primarily triggered by renewed threats from former U.S. President Donald Trump regarding tariffs against European countries over the disputed territory of Greenland. Trump stated there was "no going back" on the issue, citing Arctic security concerns. In response, French President Emmanuel Macron, speaking at the World Economic Forum in Davos, declared Europe would not bow to "bullies," emphasizing that relations should be based on respect and cooperation.
Analysts from major institutions have issued exceptionally bullish forecasts. Goldman Sachs labeled gold its "highest-conviction trade" for 2026, projecting a price target of $4,900 by year-end. Daan Struyven, co-head of global commodities research at Goldman, noted a shift in demand drivers from central bank purchases in 2023-2024 to accelerated private-sector investment in 2025, evidenced by strong ETF inflows from wealth firms, asset managers, and pension funds.
Surveys by the London Bullion Market Association indicate analysts expect gold to rise above $5,000 this year, citing lower U.S. real interest rates and continued Federal Reserve easing. Some forecasts are even more aggressive; ICBC Standard Bank's Julia Du sees potential for $7,150, while MKS PAMP's Nicky Shiels projects a 30% gain to $5,400, describing the move as a "secular trade" rather than a speculative peak.
Additional supportive factors include a weaker U.S. dollar, which fell 0.8% to a two-week low, making gold cheaper for international buyers. The rally extends a massive 60% gain for gold in 2025. Other precious metals also hit records: silver reached $95.87 per ounce, and platinum touched $2,519.51.
