Trump Pressures Europe on Greenland: Will Gold Benefit or Lose?
Global gold prices strengthened in today's trading, driven by rising safe-haven sentiment amidst US President Donald Trump's threat of new tariffs on eight European countries. Technically, gold remains within a medium-term bullish trend, although short-term movement tends to be consolidative.
Intraday, spot gold (XAU/USD) traded steadily in the upper area, indicating that buying interest remains strong despite the market facing a tug-of-war between geopolitical factors and US monetary policy expectations.
Trump's Tariff Threats Become New Fundamental Triggers
Global market sentiment heated up again after President Donald Trump threatened to impose additional import tariffs on eight European countries: Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. This threat is directly linked to these countries' rejection of the US plan to take over Greenland, a territory Trump considers strategic from a military, geopolitical, and natural resource perspective.
Trump stated that an initial tariff of 10% could be imposed soon and could increase significantly if no agreement is reached. This move sparked market concerns about a new escalation in the trade conflict between the US and Europe, which could potentially depress global economic growth.
This situation prompted investors to return to safe-haven assets like gold. Any indication of rising protectionism and historical geopolitical tensions always strengthens gold's appeal as a safe haven, especially when global systemic risks increase.
Monetary Factors Remain a Restraint on Gains
On the other hand, gold's gains were still limited by expectations of the Fed's interest rate policy. Relatively solid US economic data led the market to postpone expectations of an imminent interest rate cut. Sustained high interest rates tend to support the US dollar and bond yields, which theoretically put pressure on gold as it does not provide an interest yield.
Nevertheless, market participants assess that current geopolitical tensions and global risks are strong enough to offset monetary pressure. Furthermore, gold purchases by global central banks remain a key supporting factor in the medium to long term.
Technical Analysis: Gold Remains in the Bullish Zone
From a technical perspective, gold's movement still shows a medium-term bullish structure. The price remains above key support areas, indicating limited selling pressure. Technically, a strong support zone is located in the 4,650-4,640 range, which has so far been able to withstand corrections. As long as the price does not break through this area, the technical bias tends to remain positive. Meanwhile, the nearest resistance is located in the 4,690-4,700 area. A valid break above this zone has the potential to open up room for further strengthening towards the next psychological level.
Momentum indicators show market conditions entering a consolidation phase, reflecting a wait-and-see attitude among market participants ahead of further developments related to tariff policy and US economic data. This movement pattern indicates gold is gathering steam before determining its next direction.
Price Movement Outlook
In the short term, gold is expected to move sideways with a bullish trend, as long as global risk sentiment remains high. Further escalation of US-European tariffs or a retaliatory response from the European Union could potentially be a catalyst for further gold gains.
Conversely, if geopolitical pressures ease and the US dollar strengthens significantly, gold is at risk of a limited correction but remains in an uptrend as long as key support holds.
Conclusion
Today's gold price is supported by a combination of fundamental and technical factors. Trump's tariff threats against eight European countries over Greenland have increased global uncertainty and strengthened demand for safe havens. Technically, gold remains in a medium-term bullish trend, although short-term movements tend to be consolidative.
Against a backdrop of heightened geopolitical risks and a relatively strong technical structure, gold remains attractive to monitor as a hedge against a global market increasingly sensitive to political issues and trade policies.
Source: Newsmaker.id
