Gold prices hit a record high as the Greenland crisis boosts safe-haven demand.
Gold prices surged to a record high, and silver prices also approached historical peaks, driven by heightened safe-haven demand amid the worsening Greenland crisis and the collapse of Japanese government bonds.
U.S. President Donald Trump has shown no sign of abandoning his intention to annex Greenland. The Prime Minister of Greenland has informed the public to prepare for a potential military invasion, although he stated that such a scenario is unlikely to occur.
Market sources indicate that Denmark's pension fund 'AkademikerPension' plans to sell all of its holdings in U.S. Treasury bonds by the end of January, citing credit risk concerns over Trump's policies.
According to Zhitong Finance, Poland’s central bank (NBP) announced on Tuesday that it had approved a plan to purchase up to 150 tons of gold, which would increase the country’s total gold reserves to 700 tons.
The central bank of Poland stated in a declaration: “This will place Poland among the top 10 countries with the largest gold reserves globally.” Last week, Adam Glapinsk, governor of the central bank of Poland, announced his hope that the central bank’s management committee would raise the cap on gold holdings from 550 tons as of December 31 to 700 tons.
Spot gold prices once reached $4,781.19 per ounce.
Joni Teves, precious metals strategist at UBS Group, stated in a recent interview that the core driver of this round of gold price increases is the demand for diversified asset allocation. Institutional investors, retail investors, and central banks worldwide are increasing their gold holdings to hedge against macroeconomic uncertainties. She expects gold prices to maintain upward momentum in the first half of the year, potentially reaching $5,000 per ounce if concerns over the Federal Reserve’s independence continue to escalate. Silver is benefiting from the rise in gold prices as well as narrowing supply-demand gaps, with the possibility of challenging $100 per ounce this year. In the copper market, driven by energy transition demand, the supply-demand balance is tightening, and the price midpoint is expected to rise.
Hong Kong stocks related to gold and precious metals:
Zijin Gold International (02259), Chifeng Gold (06693), Shandong Gold (01787), Zhaojin Mining (01818), Lingbao Gold (03330), Tongguan Gold (00340), China Gold International (02099), China Silver Group (00815), Zufeng Gold (01815), etc.
