Spot gold rose 1.2% to USD 4,821.26 per ounce by early Asian trading, after touching a record USD 4,843.67 earlier in the session. Meanwhile, U.S. gold futures for February delivery climbed 1% to USD 4,813.50 per ounce.
Safe-Haven Demand Lifts Gold Prices
Market analysts said investors turned to gold as concerns grew over renewed trade tensions and political uncertainty.
According to Donald Trump, the United States would not back down from its push to gain control of Greenland. His comments raised fears of a fresh trade dispute with Europe and renewed strain within the NATO alliance.
As a result, investors shifted away from the U.S. dollar and long-term U.S. government bonds, increasing demand for gold.
Dollar Weakens as Investors Shift Assets
The U.S. dollar fell to near three-week lows against the euro and Swiss franc. At the same time, Asian stock markets extended losses for a third straight session.
A weaker dollar made gold cheaper for overseas buyers, further supporting prices.
Analysts Cite Loss of Confidence
Kyle Rodda, a senior market analyst at Capital.com, said the rise in gold reflects growing concerns over global stability.
He noted that investors now show greater confidence in gold than in the U.S. currency, especially amid fears of escalating geopolitical conflict.
Europe Pushes Back Against Pressure
Meanwhile, Emmanuel Macron said Europe would not give in to intimidation. He criticised threats of steep tariffs and warned against bullying tactics during remarks at the World Economic Forum in Davos.
Interest Rate Outlook Supports Bullion
Markets expect the Federal Reserve to keep interest rates unchanged at its January 27–28 meeting, despite calls for rate cuts.
Low interest rate expectations tend to support non-yielding assets like gold.
Other Precious Metals Mixed
While gold advanced, other precious metals recorded mixed movements.
Spot silver fell 1% to USD 93.59 per ounce, after reaching a record high earlier this week. Platinum slipped 0.7% to USD 2,445.96, while palladium declined 0.5% to USD 1,857.19 per ounce.
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Last modified: January 22, 2026
