Gold prices exceed $4,800 for the first time
Gold rose to a new record high, surpassing the $4,800 barrier on Wednesday, supported by increased demand for safe haven and a decline in the dollar as geopolitical tensions escalated after the United States and its NATO allies exchanged threats of measures over President Donald Trump's bid to seize Greenland.
Gold in spot transactions increased 1.2% to $4,818.03 per ounce, after touching a record high of $4,836.24 earlier in the session.
U.S. gold futures for February delivery rose 1% to $4813.50 an ounce.
Trump said on Tuesday that he would "not back down" from his goal of taking control of Greenland, and refused to rule out the forcible seizure of the Arctic island.
“I think we will work on something that will make NATO very happy and very happy, but we need it (Greenland) for security purposes,” he added, noting that the alliance will not be very strong without the United States.
Meanwhile, French President Emmanuel Macron said that Europe will not give in to bullies or bow to intimidation, in a sharp criticism of Trump's threat to impose heavy tariffs if Europe does not allow him to control Greenland.
The dollar fell near a three-week low against the euro and the Swiss franc on Wednesday after the White House threats over Greenland caused a large wave of US assets.
The Federal Reserve is widely expected to keep interest rates unchanged at its January 27 and 28 meeting despite Trump's calls for a cut.
Gold, which does not generate a return, usually rises in a low interest rate environment.
Silver in spot transactions rose 0.1% to $94.68 per ounce, after recording a record high of $95.87 on Tuesday.
Platinum in spot transactions increased 0.9% to $2,485.50 an ounce after setting a record high of $2511.80 earlier in the day, while palladium rose 0.4% to $1,873.18.