Gold Surges Past US$ 4,800 Amid US-EU Geopolitical Tensions 📈

• Global Market Impact: Spot gold prices hit a historic record of US$ 4,843.67 per ounce, currently trading at US$ 4,821.26 (+1.2%). This surge is driven by intense safe-haven demand as geopolitical friction rises between the US and Europe over the status of Greenland. • Currency & Bonds: The US Dollar has weakened to a three-week low against the Euro and Swiss Franc. Investors are pivoting away from US Treasuries and the greenback toward precious metals due to diminishing confidence in US fiscal stability following fresh tariff threats at Davos. • Precious Metals Breakdown: • Gold: Up 1.2% to US$ 4,821.26 (Futures at US$ 4,813.50). • Silver: Down 1% to US$ 93.59 following a record high on Tuesday. • Platinum: Down 0.7% to US$ 2,445.96 after scaling record peaks earlier. • Palladium: Trading down 0.5% at US$ 1,857.19. • National Context: For Sri Lanka, record-high gold prices typically exert upward pressure on the jewelry industry and can impact the cost of gold-backed lending (pawning), a critical source of micro-liquidity for the local economy. • Monetary Outlook: The US Federal Reserve is expected to hold rates steady at the Jan 27-28 meeting. Non-yielding assets like gold continue to perform strongly in this high-uncertainty, low-interest-rate environment.