Gold continued its record-breaking run for the third consecutive day, surpassing $4,850 an ounce on Wednesday, amid escalating geopolitical tensions and fears of a trade war, which boosted demand for the precious metal as a safe haven. This surge was primarily driven by the deepening disputes surrounding Greenland, coupled with a weakening US dollar and increased volatility in global markets.
During his participation in the World Economic Forum in Davos, US President Donald Trump reaffirmed his commitment to his plan to acquire Greenland, asserting that the island is of strategic importance to US national security in the Arctic region. In response, Greenland's Prime Minister urged citizens to prepare for a possible military move, although he maintained that such a scenario remained unlikely. This contributed to increased market anxiety and drove investors toward safe-haven assets.