Gold’s impressive rally to an all-time high experienced a slight cooling after comments from former US President Donald Trump regarding Greenland. Earlier, spot gold had surged to a fresh peak of $US4888.42 an ounce. The US dollar saw some fluctuation as bullion pared gains. Spot gold rose 1.1 per cent to $4815.17 an ounce as of 12.48pm in New York on Wednesday (Thursday AEDT). Silver, meanwhile, slipped 2.1 per cent after reaching an all-time high on Tuesday. Platinum also hit a new milestone, surpassing $US2530 for the first time.
In other metals, copper gained ground, nearing $US13,000 a tonne. Goldman Sachs analysts have predicted continued flows into the US, attributing this as a significant driver behind the industrial metal’s strong price rally. Market sentiment remains sensitive to geopolitical developments, with the Greenland situation and US relations with NATO allies contributing to market volatility.
These factors have added impetus to gold’s roughly 75 per cent surge in price over the past year. The rise in gold prices has also been underpinned by central bank buying activity, its perceived safety as a hedge against trade and geopolitical uncertainty, and US monetary loosening policies, which make non-yielding assets like gold more attractive to investors.
According to Ewa Manthey, commodities strategist at ING Groep, the bull market for gold remains intact despite the pause. She cited rate-cut expectations, persistent geopolitical tensions, and strong central bank buying as factors keeping the risk skewed to the upside. Manthey suggested that investors are likely to view any dip in price as a buying opportunity, rather than a sign of a turning point, given the elevated levels of uncertainty in the market.
