Gold surged on Wednesday, setting another record, as escalating geopolitical tensions continued to undermine investor confidence and reinforce demand for safe-haven assets.
The broad risk-off tone has favoured gold. The latter remained on a strong uptrend and stayed at the center of attention for market participants. A move reflected by persistent inflows into gold-backed ETFs and ongoing purchases by central banks, which underline strong conviction in the metal’s medium-term outlook.
Tensions between the United States and Europe intensified and fuelled concerns of further escalation around Greenland. At the same time, geopolitical risks remain elevated on multiple fronts, including Eastern Europe and the Middle East, reinforcing gold’s appeal amid global uncertainty.
Looking ahead, attention will also turn to key US economic data due on Thursday, including GDP and core PCE figures. Signs of slowing growth and contained inflation could strengthen expectations of a more dovish Federal Reserve stance in 2026, a scenario that would remain broadly supportive for gold.
