Gold prices extended an unstoppable rally on Monday, hitting unprecedented all-time highs above $4,730 an ounce. The surge is being driven by intense safe-haven buying amid escalated geopolitical tensions and a looming trade war between the United States and Europe over Greenland.
The Greenland Catalyst
The primary driver for bullion’s latest ascent is rapidly deteriorating “geo-economics,” according to Mohamed A. El-Erian.
Tensions flared following U.S. President Donald Trump’s warning of additional tariffs on specific European countries stemming from a dispute over control of Greenland.
On a day when geo-economics is again very much in evidence—including the possibility of an EU–US trade war over Greenland (with the UK seemingly caught in a messy middle)—gold has once more traded at a record high, exceeding $4,700 an ounce.Also of note for the reasons discussed… pic.twitter.com/CuyHAWMR8V
— Mohamed A. El-Erian (@elerianm) January 20, 2026
Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted that Denmark’s decision to increase its military presence in the region has further fueled “risk-off sentiment,” pushing investors toward traditional safety nets.
Kalantri added that the World Economic Forum’s Global Risks Report, indicating that nearly 50% of members expect a turbulent global environment …Full story available on Benzinga.com
