Gold surged to an all-time high after US President Donald Trump said he would avoid imposing tariffs on goods from European countries that oppose his attempt to annex Greenland, saying he had reached an “outline of a future deal” regarding the island. Silver fell.
Spot gold rose 0.6% to $4,790.13 an ounce by 3:23 p.m. in New York, while silver slipped 3.3% after hitting an all-time high on Tuesday. Platinum breached $2,530 an ounce for the first time before giving up all gains to trade down 0.9%. The Bloomberg Dollar Spot Index was little changed.
The decision, which Trump announced on social media on Wednesday, is a major reversal for a president who has repeatedly attempted to coerce Europe over the semi-autonomous Danish territory. This came after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte at the World Economic Forum in Davos, Switzerland.
Copper rose to $13,000 a tonne as Goldman Sachs forecast continued US inflows – a key driver behind the industrial metal’s powerful price rally. It closed 0.4% higher at $12,810 a tonne on the London Metal Exchange.
The dollar gained while bullion gave up the gains it had earlier seen, pushing the metal to a new peak of $4,888.42 an ounce.
The US President also said there would be additional discussions on the Golden Dome missile defense system, support for which he said was vital to US control over Greenland. Trump said Vice President J.D. Vance, Secretary of State Marco Rubio, special envoy Steve Witkoff and “various others” would be responsible for the negotiations.
Before his comments on social media, Trump had said during his Davos speech that the US would not use force to get Greenland and that the US wanted to immediately negotiate the acquisition of the Arctic island.
The Greenland crisis and US threats against its NATO allies have roiled the market, sending gold prices up nearly 75% in the past 12 months. The rally has also been supported by central bank buying, trade and haven protection against geopolitical turmoil, as well as US monetary easing that makes non-yielding assets more attractive.
“Gold may be stalling, but the bull market remains intact – risk appetite is strongly tilted to the upside due to rate cut expectations, persistent geopolitical tensions and strong central bank buying,” said Eva Manthey, commodities strategist at ING Groep NV. “With uncertainty still high, investors may view any decline as a buying opportunity rather than a turning point.”
Separately, U.S. Supreme Court justices suggested they are wary of Trump’s effort to fire Federal Reserve Governor Lisa Cook over unproven mortgage-fraud charges, saying the move could impinge on the Fed’s independence and roil markets. That helped ease some investor concerns about the U.S. central bank’s interest rate decision-making, which is a cornerstone of financial markets.
