Commodities

Gold hits new record highs on Trump Greenland escalation

Nikos Tzabouras Written by Nikos Tzabouras

Gold benefits from safe-haven flows

US President Trump has stepped up pressure on Europe over his bid to acquire Greenland, which he considers imperative for national security, including its strategic location and natural resources. Over the weekend, he announced an additional 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. This will rise to 25% in June and remain in force "until such time as a deal is reached for the complete and total purchase of Greenland". [1]

The move drew sharp rebukes from European leaders. EU Commission President von der Leyen reiterated the bloc's commitment to upholding the sovereignty of Greenland and Denmark [2], while French President Macron said tariffs were unacceptable and that Europe would not be intimidated [3]. The government of Greenland has meanwhile repeatedly rejected the US acquisition proposal and stressed that it is part of the Kingdom of Denmark. [4]

Escalating geopolitical and trade tensions sent investors towards the safety of gold, which jumped to new record highs. Such uncertainty may persist and continue to fuel the XAU/USD rally, reinforcing broader tailwinds. Fed rate cut expectations and renewed concerns over Federal Reserve independence are weighing on the USDOLLAR. Meanwhile, bullion demand remains underpinned by broader debasement trends, as rising global deficits erode confidence in major currencies.

However, gold is vulnerable to volatility as speculative position builds and profit-taking after the new highs. Furthermore, the Fed may struggle to deliver aggressive rate cuts amid macroeconomic uncertainty and above-target inflation. These factors could trigger pullbacks towards the EMA200, although closes below it would be needed to challenge the bullish bias.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.

As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.

References

1

Retrieved 19 Jan 2026 https://truthsocial.com/@realDonaldTrump/posts/115911344443637897

2

Retrieved 19 Jan 2026 https://x.com/vonderleyen/status/2012993028902805883

3

Retrieved 19 Jan 2026 https://x.com/EmmanuelMacron/status/2012595858487828814

4

Retrieved 02 May 2026 https://naalakkersuisut.gl/Nyheder/2026/01/1201_oqaaseqaat

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