GOLD prices moved above $5,000 an ounce on Sunday, reaching a new high amid global uncertainty linked to the policies of US President Donald Trump.
Gold reached $5,026 an ounce in trading, while silver rose above $102 an ounce for the first time on Friday.
Gold prices have risen in recent days amid uncertainty linked to Trump’s comments on Greenland and pressure on the Federal Reserve. The metal has also reached highs over the past two years due to factors including a weaker dollar, central bank demand and inflation.
Gold was trading just above $2,000 an ounce in January 2024.
Prices have also risen amid the wars in Ukraine and Gaza, and Washington’s intervention in Venezuela.
"Over the past few days, gold's price action has been textbook safe-haven behaviour," said Fawad Razaqzada, market analyst at Forex.com.
"Underlying demand for protection is still there. Confidence in the dollar and bonds looks a bit shaky."
Trump backed away last week from threatened tariffs on several European nations after their opposition to Washington seizing Greenland.
However, his comments led to tensions between the United States and Europe, reviving trade war concerns and uncertainty over US investment.
The dollar fell to a four-month low against the euro, while gold prices rose.
"Gold pressed on to a fresh record high as geopolitical tensions remain elevated," said Neil Wilson, investor strategist at Saxo UK, on Friday.
"The extreme tail risk of a US military intervention in Greenland was never being priced by markets. Worries about an escalatory trade war were."
Danish Prime Minister Mette Frederiksen visited Greenland’s capital on Friday for talks with the territory’s leader.
Investors are also preparing for this week’s Federal Reserve policy meeting after US prosecutors targeted its chair Jerome Powell, raising concerns about the bank’s independence.
Trump has criticised Powell, saying there is "no inflation" and questioning the Fed chair’s competence and integrity.
Major central bank leaders supported the Federal Reserve and Powell last week after US prosecutors issued subpoenas that could lead to a criminal indictment.
"Add in lingering doubts around central bank independence and you are left with a slow-burning support base for gold," said independent analyst Stephen Innes.
Gold demand by value rose 44 per cent year-on-year to $146 billion in the third quarter of last year, according to the World Gold Council.
There has also been strong demand for gold through Exchange-Traded Funds on stock markets. ETFs allow investment without trading on the gold futures market.
