Spot Gold soared to a fresh all-time high of $4,689.39/oz. on Monday, as US President Donald Trump’s new tariff threats over Greenland re-ignited safe-haven demand.
Trump said over the weekend that the US would implement a wave of increasing tariffs on European allies until it is allowed to acquire Greenland.
EU ambassadors agreed on Sunday to bolster efforts to dissuade Trump from imposing tariffs on European allies. But, in case the levies were imposed, the EU would respond with retaliatory measures, European Union diplomats said.
“Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs,” StoneX senior analyst Matt Simpson was quoted as saying by Reuters.
“With Trump throwing tariffs into the mix, it is clear that his threat to Greenland is real, and that we could be one step closer to the end of NATO and political imbalances within Europe.”
Meanwhile, investors continued to evaluate the potential depth of the Federal Reserve’s policy easing.
US producer inflation data for November turned out to be softer than expected and, similar to earlier US CPI report, suggested that price pressures were gradually subsiding. This could provide room for the Federal Reserve to lower interest rates.
Investors are now expecting at least two rate cuts by the Fed this year.
Spot Gold was last up 1.46% on the day to trade at $4,663.43 per troy ounce.
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