Gold hits record high as Trump's Davos visit fuels market uncertainty

Gold has surged to a new record high as the world awaits the arrival of the United States (U.S.) President Donald Trump in Davos to attend the World Economic Forum and meet European leaders amid Greenland tensions.

The precious yellow metal surpassed $4,800 per ounce for the first time in history on Wednesday, marking a 2 percent rise in its price. Silver prices increased by 0.44 percent, reaching $95.055 per ounce.

This comes amid increasing geopolitical tensions as President Trump stated that anything less than the U.S. control of Greenland was unacceptable, citing national security concerns.

Gold posted a bullish rally in 2025 and experts remain optimistic about gold’s upward trajectory for 2026 as U.S. interest rates fall, the dollar weakens, and central banks continue to add to their gold reserves.

The cut in U.S. interest rates is a prominent factor in gold’s bullish run as investors seek stability in their investments by choosing the metal over assets such as bonds.

Investors are hopeful that replacement of U.S. Federal Reserve Chair Jerome Powell, after his term ends in May, would be more focused on cutting interest rates than taming inflation risks.

Trump said that he has already found the replacement for Powell but has not named the person yet.