Gold Hits New Record, Greenland Tariff Threat Boosts Safe-Haven Value
Gold (XAU/USD) opened the week with a decisive bullish gap and immediately broke through a new price range, as safe-haven demand strengthened. This aggressive movement emerged after US President Donald Trump threatened to impose tariffs on several European Union countries over the issue of Greenland control, re-escalating trade tensions and weighing new geopolitical risks on already fragile market sentiment.
At the time of writing, XAU/USD was hovering around $4,663, consolidating just below a new record high of around $4,690, up nearly 1.75% on the day. Trump's renewed trade rhetoric exacerbated market jitters and drew criticism from European officials, weakening confidence in US assets and undermining the US dollar.
The weakening dollar provided additional support for gold, even as market participants began to reduce expectations of an imminent Federal Reserve interest rate cut. The combination of geopolitical risks, trade war concerns, and a weakening dollar kept interest in gold high.
Looking ahead, US markets will be closed on Monday in observance of Martin Luther King Jr. Day. Afterward, attention will turn to a series of US economic data on Thursday, including the PCE inflation report and the GDP release. On Friday, market focus shifts to the preliminary S&P Global PMI survey and the University of Michigan consumer sentiment data, which have the potential to shape market expectations regarding the Fed's policy direction. (alg)
Source: Newsmaker.id
