The price of gold today exceeded $4,800 (approximately CZK 99,670) per troy ounce (oz; 31.1 grams) for the first time. Investors perceive this metal as a safe haven after a massive sell-off of US assets due to increased tensions between President Donald Trump’s United States and NATO over Greenland.
Prices of other precious metals are also rising
Prices of other precious metals are also rising. Although silver is trading below the high of $95.87 per ounce it reached on Tuesday, platinum surpassed the $2,500 per ounce mark for the first time today.
On the spot market, where precious metals are bought and sold for immediate delivery, gold was up 2.6 percent at around 7:45 a.m. CET, trading at close to $4,888 per ounce.
“It’s a loss of confidence in the US caused by Trump’s actions.”
“It’s a loss of confidence in the US caused by Trump’s actions over the weekend, when he imposed tariffs on European countries and increased pressure in an effort to acquire Greenland. (The movement in the price of gold) reflects concerns about global geopolitical (tensions),” said analyst Kyle Rodda of Capital.com. US President Trump said on Tuesday that there was “no turning back” from his goal of taking control of Greenland. He refused to rule out the possibility of occupying the Arctic island by force and verbally attacked NATO allies.
The weakening dollar, which makes gold cheaper for holders of other currencies, is also helping to drive up the price of gold. The US currency is trading near its monthly low. The White House’s threats regarding Greenland have triggered a widespread sell-off of US assets, from currency to Wall Street stocks and government bonds. The price of platinum rose to $2,511.80 per ounce today, but then fell back below $2,500.
Source: ČTK
