KUWAIT CITY, Jan 21: Gold prices climbed to a new all-time high above USD 4,870 per ounce on Wednesday, extending record gains for a third straight day as escalating global trade tensions and geopolitical risks drove investors toward the precious metal as a safe haven.

The surge was fueled by growing fears of a trade war between the United States and Europe, alongside heightened geopolitical uncertainty, which boosted demand for gold amid volatility across global markets.

Bader Al-Ruzaihan, Head of Strategic Planning and Follow-up at Kuwait’s Dar Al-Sabaik Company, told Kuwait News Agency (KUNA) that the rally was largely driven by intensifying disputes linked to Greenland, coupled with rising instability in international financial markets. He said these factors prompted investors to increase gold allocations within their portfolios.

Al-Ruzaihan noted that remarks by US President Donald Trump during the World Economic Forum in Davos, reaffirming his commitment to a plan to acquire Greenland due to its strategic importance to US national security in the Arctic, heightened market concerns. He added that the Greenland prime minister’s call for citizens to prepare for a possible military intervention—despite stressing that such a scenario remains unlikely — further escalated tensions and strengthened demand for safe-haven assets.

He said renewed trade war fears were also sparked by US administration threats to impose additional tariffs of 10 percent on several European countries starting February 1, with the possibility of raising them to 25 percent by June if no agreement is reached. These developments pushed the US dollar down to near its lowest level in about two weeks, providing additional support for gold prices.

Al-Ruzaihan pointed to turmoil in global bond markets, particularly the sharp sell-off in Japanese government bonds, which has deepened concerns over the financial health of major economies. This, he said, has fueled so-called currency devaluation trading, as investors move away from currencies and sovereign debt toward tangible assets, led by gold.

He added that while markets have reduced expectations for further US interest rate cuts, this has not eased pressure on the dollar amid continued uncertainty. Investors are now awaiting the release of the delayed US Personal Consumption Expenditures (PCE) inflation report, along with economic growth data, which are expected to provide signals on the future direction of US Federal Reserve policy and its potential impact on the dollar and gold prices.

Al-Ruzaihan stated that the convergence of these factors continues to reinforce gold’s position as one of the most important hedging tools in a global environment characterized by rising political and economic risks and high levels of financial market volatility.