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Safe-haven demand continued on Wednesday as spot gold prices climbed over 2% to $4,888.13 per ounce, setting another fresh record amid heightened tensions between the U.S. and the European Union over Greenland.
After testing the all-time high, gold eased slightly to around $4,840 by 07:20 a.m. GMT, while silver held steady near its record level at approximately $95.50 per ounce. Other precious metals saw mild pullbacks, with palladium and platinum down 1% each to $1,860 and $2,452 per ounce, respectively, due to profit-taking.
Wednesday’s surge in gold followed a sharp downturn in U.S. equities on Tuesday, where all major Wall Street indices closed in the red. In New York, the Dow Jones Industrial Average fell 1.8% to 48,488.59, the S&P 500 dropped 2% to 6,796.86, and the Nasdaq slipped 2.4% to 22,954.32.
The selloff came after U.S. President Donald Trump injected renewed volatility into markets over the weekend, threatening to impose tariffs of up to 25% on several European countries—including France, Germany, Britain, and Denmark—over their opposition to his attempted takeover of Greenland.
Following the U.S. decline, most Asian markets traded higher on Wednesday, with the exception of Japan’s Nikkei, which closed down 0.4% at 52,774.64. Hong Kong’s Hang Seng rose 0.6%, South Korea’s Kospi gained 0.5% to 4,909.93, and China’s Shanghai Composite remained flat at 4,116.94.
European stocks opened lower on Wednesday, with the region-wide benchmark Stoxx 600 down 0.2%. Germany’s DAX slipped 0.3%, France’s CAC 40 traded mostly flat, while the U.K.’s FTSE 100 edged up 0.1%. Meanwhile, major U.S. index futures posted modest gains.
In Türkiye, the benchmark BIST 100 index opened the day higher at 12,839.89, up 0.3%, but quickly slipped into negative territory in the minutes that followed.
Cryptocurrencies also came under pressure, with Bitcoin falling 2% to below the $90,000 mark and Ethereum dropping 5% to under $3,000.
Analysts say the rally in precious metals could have more room to run. David Wilson, commodities strategist at French bank BNP Paribas, said gold is closing in on $5,000 faster than anticipated amid mounting uncertainty, citing U.S. tariffs over Greenland and renewed concerns about Federal Reserve independence.
"Gold thrives on uncertainty," Wilson told Bloomberg. "We're at $4,700. $5,000 is not much of a stretch right now." He added that BNP may revise its 2026 forecast upward if current momentum holds.
Silver, meanwhile, could see a correction after reaching $100, as physical tightness fades and profit-taking begins. "It’s a thin market," he said. "We could get quite a significant correction."
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