Greenland Heats Up, Gold Prices Hit All-Time High
Gold prices surged to an all-time high in Asian trading on Monday, nearing $4,700 an ounce, as demand for safe haven assets increased after U.S. President Donald Trump threatened to impose new tariffs on eight European countries over their attempts to acquire Greenland.
Spot gold rose 1.6% to $4,667.33 an ounce at 2:26 a.m. ET (7:26 a.m. GMT), after hitting a record high of $4,690.75/ounce earlier in the session.
U.S. gold futures hit a peak of $4,697.71/ounce.
Gold prices boosted by Greenland risks and interest rate cut speculation
Gold prices continued last week's strong rally after Trump said over the weekend he would impose new tariffs on eight European countries that oppose his plan for the U.S. to acquire Greenland.
Trump said the US would impose 10% tariffs on goods from affected countries starting February 1, with those tariffs rising to 25% in June if no deal is reached.
The targeted countries include France, Germany, and the UK, along with several Nordic and northern European countries.
The announcement drew sharp criticism from European officials and raised concerns of a broader transatlantic trade dispute, prompting investors to seek refuge in precious metals.
The tariff threat adds to an already supportive backdrop for gold, which has benefited in recent weeks from expectations that the Federal Reserve will begin easing monetary policy later this year.
Weaker US economic data and signs of cooling inflation have strengthened the case for interest rate cuts, reducing the opportunity cost of holding non-yielding assets like gold and other metals.
Silver prices rose more than 4% to a new record high of $94.03/oz. The white metal is supported not only by demand as a safe-haven asset but also by its dual role as an industrial metal.
Platinum prices also jumped more than 1% to $2,358.69/oz on Monday, supported by growing investor interest in physical assets.
Copper prices rise after Chinese GDP data shows some resilience
Among industrial metals, copper prices rose on Monday after gross domestic product data from top importer China showed the country's economy met Beijing's 5% growth target for 2025.
The benchmark copper futures contract on the London Metal Exchange rose 0.6% to $12,881.0 per tonne. Copper was also swept up by the rally in physical assets through to the end of 2025, with investors betting that increased spending on data centers worldwide will boost demand for the industrial metal.
Chinese data showed GDP rose slightly above expectations in the December quarter, adding to hopes that the Chinese economy remains resilient. Such a scenario bodes well for global copper demand.
Monday's reading showed Chinese exports remain the biggest driver of growth, while business and private spending lagged.
The uneven recovery has also fueled hopes for more stimulus measures from Beijing. The People's Bank of China is scheduled to decide on a key lending ratio on Tuesday.
Source: Newsmaker.id
