New York, January 21, 2026, 06:11 (EST) — Premarket
- Spot gold surged past $4,800, hitting a fresh record high in early trading
- Demand climbs amid ongoing Greenland tensions and fears over a trade war, pushing investors into a defensive stance
- Attention now shifts to Trump’s comments at Davos and a U.S. Supreme Court hearing involving the Fed
Gold surged past $4,800 an ounce Wednesday, extending its record-breaking streak as investors flocked to safe havens amid escalating U.S.-Europe tensions over Greenland. Spot gold climbed 2.1% to $4,861.38 by 1024 GMT, having hit a fresh high of $4,887.82 earlier; February U.S. gold futures rose 2% to $4,863.10. The metal has hit 11 new highs in 2026 alone. Jamie Dutta of Nemo.money pointed to “the Greenland crisis” as a key driver, while SP Angel analyst John Meyer expects gold to “punch through $5,000/oz.” (Reuters)
The bid surged anew following President Donald Trump’s declaration that there’s “no going back” on his push to control Greenland, even refusing to dismiss the idea of seizing the Arctic island by force. This standoff has reignited fears of a trade war, as European officials mull retaliation measures, including tariffs set to snap back automatically on Feb. 6 once a suspension ends. (Reuters)
Trump plans to bring up the issue again at the World Economic Forum in Davos on Wednesday, facing stiff resistance from European leaders in what Reuters calls the most serious strain on transatlantic relations in decades. He told reporters that he would hold talks on Greenland while in Switzerland and added, “I think we will work something out where NATO is going to be very happy and where we’re going to be very happy.” (Reuters)
Gold’s latest jump follows Tuesday’s rally, when spot prices topped $4,765—a record high—and U.S. futures climbed 3.7% after Trump revived tariff threats against Europe, rattling riskier assets. “Gold has surged deeper into uncharted territory as investors hedge against rising political risk,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. Traders are also factoring in two 25-basis-point rate cuts by mid-2026, Reuters noted, with the rally helped along by a weaker dollar. (Reuters)
A softer U.S. dollar usually boosts dollar-denominated commodities, as it makes them more affordable for buyers dealing in other currencies. Gold, being “non-yielding” and not paying interest, also benefits when interest-rate expectations decline, since the cost of holding it drops alongside anticipated rates.
Investors are closely monitoring the showdown in Washington involving the Federal Reserve. The U.S. Supreme Court is set to hear arguments on Wednesday about the legality of Trump’s effort to oust Fed Governor Lisa Cook. Treasury Secretary Scott Bessent cautioned that Fed Chair Jerome Powell attending the hearing would be a mistake, warning it could politicize the central bank. Critics, meanwhile, argue that Trump’s attempt threatens the Fed’s independence. (Reuters)
Setting aside the legal battle, Bessent noted Trump might name the next Fed chair “maybe as soon as next week” after trimming the list of candidates. He pointed to Trump economic adviser Kevin Hassett, Fed Governor Christopher Waller, former Fed Governor Kevin Warsh, and BlackRock bond chief Rick Rieder among the frontrunners. Powell’s current term as chair ends in May. (Reuters)
The recent rally has left gold exposed to steep drops if the headlines lose steam or the dollar stabilizes. Investors are also tracking inflows into gold-backed exchange-traded funds, or ETFs, looking for clues that the buying spree may be losing momentum after the recent spike.
Markets will be focused on Trump’s Davos comments later Wednesday, searching for any sign of easing on Greenland and trade tensions. Also on the radar is the Supreme Court’s Cook hearing that same day, with investors scrutinizing both the outcome and the tone for clues on Fed independence and the dollar’s direction.
