Gold surges as Greenland tensions escalate, eyeing $5,000 target
Gold reached a new record high of $4,888 on Wednesday, drawing even closer to the psychologically important $5,000 level, which appears increasingly likely to be challenged soon if current market conditions persist.
The yellow metal’s rally accelerated sharply over the past three sessions amid renewed escalation in tensions between the United States and the European Union over Greenland. President Trump repeatedly asserted that Greenland should become U.S. territory—either through diplomatic agreement or by force—triggering a major diplomatic rift.
This latest conflict represents the most serious threat to NATO unity and U.S.-EU relations in history, potentially leading to severe negative consequences if the dispute continues to intensify. However, the NATO/EU-US discord is only one of several key factors undermining investor confidence and driving flows into safe-haven assets, with precious metals standing out as the primary beneficiary.
The recent surge moved from one major round-number barrier to the next in under 24 hours, climbing from $4,700 to $4,800 and approaching $4,900, with the $5,000 mark now firmly in focus.
Although prices eased slightly after reaching the new record high, traders have so far shown only limited profit-taking, keeping gold comfortably above the critical $4,800 support level. A close above this level would reinforce strong bullish momentum.
On the technical side, daily indicators remain deeply overbought, signaling a potential correction. Yet fundamentals continue to favor gold bulls and are expected to outweigh these technical warnings, as the metal has been primarily driven by fundamental factors over the past few months.
Further strengthening the bullish outlook was President Trump’s speech at the Davos Economic Forum, where he reiterated U.S. intentions toward Greenland. The EU’s immediate response—halting work on the EU-U.S. trade deal—may further deepen the dispute and sustain safe-haven demand.
Should prices dip below $4,800, the next support levels are $4,757 (today’s low), $4,700 (key round figure), and $4,670 (rising daily Tenkan-sen). These levels are expected to contain any extended pullbacks and set the stage for a healthy correction before the next upward push.
Res: 4860; 4888; 4900; 4932
Sup: 4800; 4757; 4700; 4670
