Spot gold edged lower after nearing the US$5,000-an-ounce mark earlier on Friday, as investors booked profits after prices struck another record driven by the uncertain geopolitical outlook.

Silver and platinum also hit all-time peaks.

Spot gold was down 0.1% at US$4,930.44 per ounce, as of 1028 GMT, after scaling a record US$4,967.03 earlier in the day. Prices have risen 14% since the start of this year.

US gold futures for February delivery added 0.4% to US$4,932.20 per ounce.

“Despite easing geopolitical and tariff-related risks, market caution remains rife with uncertainty still in the air,” Lukman Otunuga, senior research analyst at FXTM said. “In the near term, technical forces and profit taking limit upside gains.”

US President Donald Trump said on Thursday that he had secured total and permanent US access to Greenland in a deal with Nato.

While relieved Trump had stepped back from his threats of tariffs over his demand for control of the island, EU leaders said they remained ready to act if Trump’s future behaviour made that necessary.

Central bank buying and e-dollarisation also drove rally

Buying by central banks and a broader de-dollarisation trend have helped to push gold higher and higher, as investors seek shelter from global policy risks and volatility.

Meanwhile, the Federal Reserve is expected to hold rates steady at its Jan 27–28 meeting, but markets still expect two further rate cuts in the second half of 2026.

A low-interest-rate environment and economic uncertainty traditionally favour non-yielding assets such as gold.

Gold premiums in India jumped this week to their highest level in more than a decade, as investors rushed to buy the metal on expectations of a duty hike in the upcoming budget, while China premiums dipped.

Spot silver surged 2.4% to US$98.47 an ounce, after hitting a record high of US$99.34 earlier, with a yearly gain of 37% thus far in 2026.

Source: theedgemalaysia