Gold prices surged to a new all-time high of $4,844.39 an ounce on Wednesday, climbing 1.7% as investors fled to safe-haven assets. The rally was fueled by escalating geopolitical tensions over Greenland and renewed trade frictions, which rattled global markets. U.S. gold futures also rose, gaining 1.3% to $4,830.04.

The surge comes as relations between the U.S. and Europe remain strained. President Donald Trump has insisted on securing Greenland for security reasons, threatening tariffs against European allies. French President Emmanuel Macron responded at Davos, stating Europe would not bow to such pressure. The dispute has unsettled markets already anxious about global trade risks and the U.S. dollar's weakness.

A softer dollar, which slid to a two-week low, made gold cheaper for foreign buyers, further boosting demand. Bullion has jumped more than 5% this week alone, extending a relentless rally. Investors remain cautious, watching for further diplomatic developments and the impact on broader asset classes. The record high puts the $5,000 level in focus.