Gold prices surged to fresh record highs on Wednesday, now approaching $4,900 an ounce levels, as escalating tensions linked to Greenland and renewed trade frictions rattled global markets and drove investors toward safe-haven assets.

Spot gold jumped 2.3% to $4,872.13 an ounce by 01:13 ET (06:13 GMT), after hitting a new all-time high of $4,878.30/oz earlier in the day.

U.S. Gold Futures also climbed 2.4% to historic highs of $4,880.50/oz.

Gold boosted by US-EU tensions over Greenland

Gold prices have jumped more than 6% this week, including today’s gains.

The latest surge came as relations between the U.S. and Europe remained strained over Greenland’s strategic importance.

U.S. President Donald Trump has insisted there is “no going back” on Greenland, citing security concerns in the Arctic, and has threatened tariffs against European countries, unsettling markets already on edge over global trade risks.

French President Emmanuel Macron said Europe would not bow to “bullies,” stressing that respect and cooperation, not coercion, should define relations between allies.

His remarks, delivered on the sidelines of the World Economic Forum in Davos, underscored growing unease in Europe over Washington’s rhetoric and trade threats tied to the Greenland dispute.

Trump sought to calm nerves by saying the U.S. was working on the issue and aimed for an outcome that would satisfy NATO, but investors remained cautious.

Weaker dollar provides further support

Investor demand for gold was further boosted by weakness in the U.S. dollar, which slid about 0.8% on Tuesday to a two-week low.

The US Dollar Index traded 0.2% lower during Asian hours on Wednesday.

A softer dollar makes gold cheaper for holders of other currencies and typically lifts demand for the non-yielding metal.

Among other precious metals, silver prices edged slightly higher to $94.75/oz after hitting a record high of $95.87/oz on Tuesday.

Platinum rose to a record high of $2,519.51/oz on Wednesday but later pared gains to trade 0.2% higher at $2,467.9/oz.

Benchmark Copper Futures on the London Metal Exchange rose 1.3% to $12,944.20 a ton, while U.S. Copper Futures gained 1% to $5.88 a pound.