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Gold tops $4,700 as investors seek refuge; US stocks fall
Gold futures have exceeded $4,700 for the first time in history, while silver has climbed above $94 per ounce. Geopolitical uncertainty remains acute as the dispute over Greenland continues to strain relations between the United States and European nations. Simultaneously, market participants are questioning the Federal Reserve’s future independence amidst escalating pressure from the US Executive.
At market close, gold futures rose by 3.7% and silver by 6.8%, driven by a concerted flight to safety.
Market participants are focusing on the upcoming World Economic Forum in Davos, Switzerland, where potential meetings between European leaders and US President Donald Trump may occur.
Friction between the White House and the Federal Reserve has intensified following Treasury Secretary Scott Bessent’s suggestion that President Trump could appoint a new Fed Chair as early as next week.
Netflix’s Q4 2025 financial results exceeded expectations, posting 17.5% year-on-year revenue growth and a 30% increase in earnings per share; despite this, the share price declined in after-hours trading.
Gold prices breach $4,700 threshold amid safe-haven demand
The gold futures contract (GCG26) reached a historic milestone, closing at $4,764 per ounce—a daily appreciation of 3.7%. Concurrently, silver futures surged 6.8% to reach $94.50 per ounce. Precious metals continue to break records as investors and central banks aggressively pursue safe-haven assets to bolster reserve levels.
While various geopolitical and trade tensions weigh on global markets, the specific escalation over Greenland and mounting concerns regarding the Federal Reserve’s autonomy have provided the primary catalysts for this rally.
Attention now shifts to the Davos summit. Investors are monitoring the event closely for any diplomatic breakthroughs or further confrontations between President Trump and European heads of state.
Furthermore, Executive pressure on the Federal Reserve has intensified, stoking fears that the central bank’s independence may be compromised by political coercion. Reports from Reuters and CNBC indicate that Treasury Secretary Scott Bessent suggested a new Fed Chair could be named next week, a move that has significantly heightened domestic political volatility.
Figure 1. Gold futures contract (2025-2026). Source: Data from the COMEX Exchange; Figure obtained from TradingView.
US stock markets retreat as concerns over Fed independence mount
According to reports from Reuters and CNBC, Treasury Secretary Scott Bessent has indicated that Donald Trump may designate a successor to the Federal Reserve Chairmanship next week. Such assertions have fostered profound uncertainty, as Executive attempts to influence the central bank become increasingly overt.
As President Trump seeks to challenge Chair Jerome Powell in court over alleged misconduct, the legal dispute regarding the dismissal of Fed Governor Lisa Cook continues. In both instances, Fed officials have remained steadfast, resisting calls for premature interest rate cuts. This monetary conservatism contrasts sharply with the President’s preference for an expansive monetary policy to mitigate the rising costs of national debt servicing.
Consequently, US equity markets declined in unison. The S&P 500 fell 2% to 6,796 points, the Dow Jones decreased 1.76% to 48,488, and the Nasdaq dropped 2.12% to 24,987. The Russell 2000 also depreciated by 1.21%, closing at 2,645. Additionally, the US Dollar Index (DXY) retreated 0.49% as waning investor confidence prompted a gradual capital outflow from US-denominated assets.
Netflix shares slide post-market despite strong Q4 performance
Streaming giant Netflix Inc. outperformed analyst projections for both total revenue and earnings per share (EPS). The company reported $12.05 billion in revenue for the fourth quarter of 2025, surpassing the anticipated $11.97 billion. Reported EPS stood at $0.56, marginally ahead of the $0.55 forecast.
These figures represent a 17.5% year-on-year increase in revenue and a 30% surge in EPS. However, despite these robust growth indicators, the stock was caught in the broader market sell-off. In post-market trading, Netflix shares saw a decline of approximately 5%, weighed down by prevailing bearish sentiment across the US indices.
