Spot Gold extended its bullish run to a fresh record high of $4,887.82/oz. on Wednesday amid simmering tensions between the US and Europe over US President Donald Trump’s push to take over Greenland.
Trump said over the weekend that the US would impose a 10% tariff on imports from several EU countries that oppose the Greenland proposal. That levy will take effect on February 1st.
Then, the duty would be increased to 25% on June 1st and remain in place until an agreement is reached on what Trump called the “complete and total purchase” of Greenland.
Trump said earlier this week there was “no going back” on his objective to control Greenland. Then, he noted that “we will work something out where NATO is going to be very happy and where we’re going to be very happy.”
“It’s the loss of trust in the U.S. caused by Trump’s moves over the weekend to tariff European countries and increase coercion in trying to take Greenland. (The move in gold) reflects fears about global geopolitical (tensions),” Kyle Rodda, senior market analyst at Capital.com, was quoted as saying by Reuters.
Washington’s threats over Greenland have led to a heavy sell-off in US assets – from the US Dollar to stocks and bonds.
Spot Gold was last up 1.97% on the day to trade at $4,857.19 per troy ounce.
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