Gold futures hit a record high, with geopolitical uncertainties and a weak dollar fueling safe-haven asset demand

2026-01-21 01:21:45

Source: BlockMedia Original Title: Gold Futures Break $4,750… Surge Over 3% in a Day Amid Safe-Haven Preference Original Link: https://www.blockmedia.co.kr/archives/1034318 Gold futures prices hit an all-time high. As tensions over Greenland sovereignty between the US and Europe escalate, increasing geopolitical uncertainty, coupled with a decline in the dollar’s value, has sharply boosted safe-haven demand.

January gold futures on the New York Mercantile Exchange(COMEX) traded at $4,759.60, up $171.20(3.73%) from the previous day. This is the largest daily dollar increase ever and the highest rise since April 9, 2020. Intraday, the high reached $4,756.60.

Spot gold prices also surged significantly. At the same time, spot gold traded at $4,760, up $164.49 from the previous day, setting a new all-time high. This rebound followed two consecutive days of decline, indicating a short-term influx of funds into safe assets.

The sharp rise in gold prices today is attributed to threats of tariffs related to Greenland purchases. Warnings emerged that tariffs of 10% starting February and 25% in June would be imposed on eight European countries, escalating tensions with the European Union(EU). European officials strongly opposed, calling it economic coercion, and geopolitical risks rapidly expanded.

During this process, the dollar’s value quickly weakened, also fueling the rise in gold prices. As trust in the dollar, which traditionally acts as a safe asset during geopolitical risk phases, was shaken, investors shifted their focus to gold.

Commerzbank strategists commented, “A hawkish policy stance is weakening the dollar’s safe-haven status,” and “As a result, preference for alternative safe assets like gold is becoming more pronounced.”

Additionally, the surge in US Treasury yields and increased volatility in the bond market are also factors stimulating gold demand. As the relative attractiveness among traditional safe assets wavers, gold has emerged as a key refuge for risk-averse capital.

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