Gold futures surged to a fresh record early Wednesday, touching USD4,887 an ounce before easing to USD4,840, still the highest settlement on record, as geopolitical anxieties cooled without extinguishing investor appetite.
Prices had sprinted higher on headline risk, but the tone shifted after US President Donald Trump softened rhetoric around his administration’s controversial plan to acquire Greenland.
Speaking at the World Economic Forum in Davos, Trump said the United States would not use military force to pursue the
territory, which he argues is critical to national security. He also sought to reassure European governments opposed to the idea, saying they would not face retaliatory tariff hikes.
The comments took some heat out of safe-haven buying, yet gold remained firmly bid. The metal has climbed for two consecutive sessions, gaining 5.3 percent, or nearly half of its 11.7 percent rise this January, equivalent to USD506.20 so far this month.
Bullish sentiment appears entrenched. A recent London Bullion Market Association survey projects further advances after record-breaking 2025. Analysts see average gains of 38 percent this year, underpinned by expectations of lower US interest rates, continued Federal Reserve easing, and diversification away from the US dollar, alongside lingering geopolitical risks. Some forecasts see prices stretching as high as USD7,000 an ounce.
In Philippines, the gold rally carries corporate implications. Listed Philex Mining Corp., the country’s largest gold producer, stands to benefit from elevated prices, particularly with the anticipated opening of its Silangan Mine in the first quaerter, set to replace output from the aging Padcal Mine.
