Bull market in gold faith in addition! Greenland crisis + Japanese bond collapse + Fed independence crisis The price of gold is poised to reach $5,000.

Amid the Greenland sovereignty crisis, a major crash in long-term bond prices in Japan, and the threat to the independence of the Federal Reserve by President Trump providing strong support for global safe-haven demand, one of the precious metals, gold, continues its record-breaking price surge. After a meteoric rise of 70% in gold spot/futures prices in 2025, the beginning of 2026 could be described as continuing the rainbow-like bull market trajectory. President Donald Trump of the United States is scheduled to deliver an important speech at the World Economic Forum in Davos, Switzerland, however, he showed no signs of willingness to back down on the issue of military takeover of the Arctic island. This prompted the Prime Minister of Greenland and the sovereign nation Denmark to warn the island's residents of a possible military invasion, although the Prime Minister of Greenland added that this was an unlikely major crisis situation. In addition to the threat of military takeover of Greenland, President Trump even directly threatened to impose further tariffs on eight European sovereign nations opposing the takeover of Greenland by the Trump administration, raising strong concerns of a destructive trade war between the US and Europe. As of the time of writing, spot gold has surpassed the important technical level of $4880 per ounce, with the latest price at $4862.51 per ounce, up 2.03% on the day; COMEX gold futures latest price is $4862.10 per ounce, up 2.02% on the day, reaching a historic high of $4890 per ounce on Wednesday. This week, trades related to "dumping the US" once again became the headline in the financial markets. Adrian Ash, research director at BullionVault, told the media that the anxiety of market selling this time is more widespread. "With the Trump administration directly arresting the Venezuelan leader, threatening to take over Greenland by force, threatening to impose new tariffs on European allies, and threatening the independence of the Federal Reserve, Trump's latest blow to the existing world order is scaring off all investors." He added that amidst a general decline in global stock and bond markets, "gold and silver have set new highs in all currency terms." Michael Armbruster, co-founder and managing partner of Altavest, believes that although the news surrounding Greenland tensions may quickly fade, the medium-term trend in precious metals remains upward. He believes that the current rally is primarily driven by demand: gold is mainly supported by central bank buying, while silver is fueled by rapidly expanding industrial demand. According to media reports, one of the largest central bank buyers in the world, the National Bank of Poland, will provide stronger funding support for this long-term bull market trajectory of gold by approving a significant plan to purchase about 150 tons of gold. As shown in the chart above, gold continues to break historical records in 2026, with tensions in Greenland and the Trump administration's renewed assault on the independence of the Federal Reserve supporting the gold bull market. Copper, one of the core industrial metals, has also joined the surge in metal prices, rising to $13,000 per ton. A recent forecast from Goldman Sachs shows that under the threat of tariffs on refined copper and other important industrial metals by the Trump administration, funds flowing into the US copper futures market will continuethis is a key driver behind the strong price surge in industrial metals. Ray Dalio, founder of Bridgewater Associates, the world's largest hedge fund, believes that the current global monetary order centered around the dollar is collapsing, with major central banks around the world no longer seeing fiat currency as a reliable store of wealth but instead increasing their holdings of gold. This reflects a shift from fiat currencies to hard assets in the face of global trade and capital wars, as US sovereign debt soars and global geopolitical mistrust returns, markets are experiencing a shift from fiat to hard assets. With the worsening Greenland sovereignty crisis and the collapse of Japanese sovereign debt, gold continues its strong rally in early 2026. The United States has now threatened to impose tariffs on eight European countriesincluding Germany, France, and the UKthat oppose Trump's plans to take over Greenland, intensifying concerns about the potential outbreak of a destructive trade war. French President Emmanuel Macron criticized Trump's use of tariffs as a trade tool, saying that the European continent needs more sovereignty to avoid "American-style vassalization and bloody politics," while Canadian Prime Minister Mark Carney said that the rule-based international order is effectively dead. The recent spat at Davos highlights how quickly the relationships between long-standing allies of the US have deteriorated, undoubtedly causing increased unease in global financial markets, leading to selling of US assets such as the dollar, US bonds, and US stocks, and a massive boost to demand for safe-haven assets like gold, silver, and other precious metals. The super collapse of Japanese sovereign debt also highlights market concerns about the fiscal situation of major developed economies globally, driving the so-called "sovereign currency debasement trade," where investors are shunning currencies and government bonds. Heightened concerns over government sovereign debtdebt/GDP ratios of the US, Germany, France, Italy, and the UK expected to continue rising. On Wednesday, spot gold and gold futures prices continued to hit historic highs; silver futures prices fluctuated around $95 after hitting a historic high on Tuesday; platinum futures prices briefly hit a record high of $2,511.10 per ounce. Daniel Ghali, Senior Commodities Strategist at TD Securities, wrote in a report that the situation of Japanese sovereign debt is causing "fear among developed markets of market-driven debasement trades taking place in other developed regions of the world." "The rise of gold is about trust and confidence. So far, trust has been severely bent but not broken. If it breaks, momentum will be more lasting." Gold may also receive stronger support from one of the largest publicly-owned buyers globallythe National Bank of Poland. The bank has approved a plan to repurchase 150 tons of gold; meanwhile, under new regulations introduced in December 2025, the Central Bank of Bolivia has also resumed additional gold purchases for its foreign reserves. James Steel, Chief Precious Metals Analyst at HSBC, emphasized in a recent research report that the fuel for the meteoric rise of gold prices this time is no longer just traditional expectations of monetary easing, but a "potent cocktail" of geopolitical risk and fiscal deterioration. The growing demand for safe-haven investments globally and the strong pace of gold purchases by central banks are still driving this strong bull market trend in gold. For investors seeking shelter in "hard-haven assets," this research report is not only a forecast of prices but also a "vote of no confidence" in the current geopolitical landscape and the global credit currency system. Although institutional and retail investors' chase in the short term may bring high volatility, the continuous inflow of long-term funds from global central banks is building higher bottom support for gold prices. Therefore, HSBC predicts that gold prices are likely to break through the super threshold of $5000 per ounce in the first half of 2026. HSBC points out in the report that besides traditional geopolitical risks (such as the Russia-Ukraine conflict and ongoing conflicts in the Middle East), the growing fiscal deficits in the Western world are becoming a significant hidden driver of the rise in gold prices. Predictive data shows that the US federal deficit is expected to reach $2.05 trillion in the 2026 fiscal year, accounting for about 6.5% of GDP. Analysts from Deutsche Bank and Credit Suisse emphasize that since the freezing of Russia's foreign exchange reserves in 2022, emerging market central banks have accelerated the process of "de-dollarization," and therefore, global central banks, including those in emerging markets, are forming an "increasingly strong source of sticky demand," highlighting the "prolonged transformation" of global official reserve managementfrom US treasuries to gold. Citibank's recent bullish outlook on precious metals is even more aggressive, stating that silver prices are expected to rise significantly to $100 per ounce in the near term, and gold is expected to break through $5000 in the coming 3 months. Citibank states that in the unprecedented high-price trend, the continued deterioration of global geopolitical situations and the uncertainty brought by the Trump administration regarding global economic prospects and currency values, coupled with physical shortages of gold and silver, along with the threat to the independence of the Federal Reserve by the US, collectively provide crucial support for their predictions. In a bullish scenario, Citibank's analyst team has raised their gold target price for the next 0-3 months from $4200 per ounce to $5000 per ounce, while their silver target price has been raised significantly from $62 per ounce to $100 per ounce.