On Friday morning, the price of gold reached an all-time high, exceeding $4,960 per troy ounce, as reported by RIA Novosti.
Analysts point to rising geopolitical risks alongside threats related to the independence of the U.S. Federal Reserve (Fed).
As of 8:29 AM Moscow time, the price of February gold futures on the New York Comex exchange rose by $44.91, or 0.91%, to $4,958.31 per troy ounce. Earlier during trading, the price reached $4,969.69, setting a new record.
Meanwhile, March silver futures also showed an increase of 2.38%, reaching $98.6 per ounce and hitting a new high of $99.19.
“Gold is experiencing significant overvaluation against the backdrop of the weakening post-war world order,” said Yuxuan Tang, head of macro strategy in Asia at J.P. Morgan Private Bank, according to Bloomberg.
The analyst added that investors increasingly see gold as a reliable way to protect against these difficult-to-assess risks.
Traders are closely monitoring U.S. actions regarding Greenland. At a forum in Davos on Wednesday, U.S. President Donald Trump stated that the possibility of a long-term agreement on Greenland is being discussed, with a duration of “eternity.” He also noted that after a meeting with NATO Secretary General Mark Rutte, a basis for a future agreement on the island was established.
Additionally, markets are evaluating potential threats to the independence of the Fed. The current chairman Jerome Powell's term expires in May, and Trump has called for his resignation due to the slow pace of interest rate cuts, but he has not fired him, fearing criticism for interfering with the regulator's independence.
The U.S. President promised to announce a candidate for the head of the Fed soon, hinting at National Economic Council Chairman Kevin Hassett.
