By: Economy Middle east

Gold prices surged to a record high surpassing $4,800 per ounce on Wednesday, as investors turned to the metal for safety following a widespread selloff in U.S. assets due to heightened tensions between the U.S. and NATO regarding Greenland.

The price of spot gold jumped 2.33 percent to $4,872.01 per ounce, and U.S. gold futures for February delivery saw a 2.24 percent rise to $4,872.76 per ounce.

In the UAE, gold rates have experienced a notable rise. The cost of 24-carat gold has increased by AED15.00, reaching AED586.25. Similarly, 22-carat gold has risen by AED13.00, now priced at AED542.75. Furthermore, 21-carat gold has gone up by AED13.25, totaling AED520.50, while 18-carat gold has seen an increase of AED11.50, now at AED446.25.

On Tuesday, Trump declared that there was “no going back” from his aim to control Greenland, not dismissing the possibility of seizing the Arctic island by force and criticizing NATO allies.

He subsequently remarked, “we will work something out where NATO is going to be very happy and where we’re going to be very happy.”

In the meantime, French President Emmanuel Macron emphasized that Europe would not succumb to intimidation or bullying, delivering a strong rebuke of Trump’s warning about imposing steep tariffs at Davos if Europe did not allow him to take over Greenland.

After White House threats concerning Greenland sparked a broad selloff in U.S. assets, the dollar index fell to a near one-month low, impacting the currency, Wall Street stocks, and Treasury bonds.

A decline in the dollar makes metals priced in U.S. dollars more affordable for foreign buyers.

Spot silver slid 0.21 percent to $94.59 an ounce, following its record high of $95.87 on Tuesday.

Spot platinum declined 0.65 percent to $2,460.00 per ounce after earlier achieving a record high of $2,511.80. Palladium also saw a slight decrease of 0.11 percent, reaching $1,855.00.