| Gold resumed gains and touched a new record as the U.S. dollar weakened against most of its major peers following President Donald Trump's latest tariff threats against Europe over Greenland. Spot gold traded up 1.6 percent at $4,669.82 an ounce, after having hit a high of $4,690.75 in early Asian trade. U.S. gold futures were up 1.7 percent at $4,674.09.
The dollar index was under pressure, as investors shifted toward safe-haven assets such as the Japanese yen and the Swiss franc, reflecting a risk-off sentiment in financial markets. Trump vowed to slap a 10 percent tariffs on eight European nations starting Feb.1, which could rise further to 25 percent in June unless the U.S. is allowed to buy Greenland.
Former U.S. President Donald Trump doubled down on his plan to acquire Greenland, claiming NATO had long warned Denmark about the “Russian threat” and that Copenhagen failed to act. “Now it is time, and it will be done!!!” he declared on Truth Social ahead of the World Economic Forum in Davos. Meanwhile, concerns are rising that Trump’s aggressive stance toward Iran and Venezuela—through sanctions, military pressure, and provocative rhetoric—could have lasting global repercussions. The controversy deepened after Venezuelan opposition leader Maria Corina Machado announced she would give her Nobel Peace Prize medal to Trump, sparking widespread criticism.
In Iran, President Masoud Pezeshkian has warned that any attack on Supreme Leader Ayatollah Ali Khamenei would trigger an all-out war. Beyond tariff and geopolitical concerns, traders await U.S. PCE, GDP and jobless claims reports this week for cues on the Federal Reserve's rate outlook.
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