On Friday morning, the price of gold rose to a record high of over $4,960 per troy ounce, as reported by RIA Novosti.
Analysts point to geopolitical risks, adding that they may threaten the independence of the U.S. Federal Reserve (Fed).
On the New York Comex exchange, at 8:29 AM Moscow time, the price of February gold futures increased by $44.91 or 0.91%, reaching $4,958.31 per troy ounce. Earlier during trading, the price peaked at $4,969.69.
At the same time, March silver futures rose by 2.38%, reaching $98.6 per ounce, updating a maximum value of $99.19.
According to Yuxuan Tang, head of macro strategy in Asia at J.P. Morgan Private Bank, "gold is undergoing a persistent revaluation due to cracks appearing in the international order established after World War II," as reported by Bloomberg.
The analyst adds that "investors are increasingly viewing gold as a safe asset to protect against these unpredictable risks."
Traders are closely monitoring U.S. actions regarding Greenland. At a recent forum in Davos, U.S. President Donald Trump stated that a long-term deal concerning Greenland is being discussed, which he characterized as "everlasting." He also noted that a foundation for a future agreement regarding the island was developed following his meeting with NATO Secretary-General Mark Rutte.
Markets are also concerned about threats to the Fed's independence. The powers of its head, Jerome Powell, expire in May, and Trump has called for his resignation due to the slow pace of interest rate cuts; however, he has not dismissed him, fearing criticism regarding the regulator's independence.
The U.S. president will announce his candidate for the head of the Fed soon, hinting at the possibility of appointing Kevin Hassett, head of the White House Council of Economic Advisers.
