Trade War Looms, Gold Struggles to Fall!
Gold prices remained near their highest level on Tuesday (January 20th), following a sharp rally triggered by escalating US-European tensions. Gold traded around $4.67,000 per ounce, indicating the market's continued strong search for a safe haven amid rising global risks.
The main trigger came from the Greenland issue. US President Donald Trump continues to push his plan to take over the island, and tensions escalated after news emerged that Denmark was strengthening its military presence. This situation has investors worried that the political conflict will turn into economic pressure.
On the trade front, Trump previously threatened additional import tariffs on eight European countries that oppose the Greenland plan. The market is awaiting Europe's response, as retaliatory measures could further escalate the risk of a trade war and prolong the uncertainty.
While gold held high, silver briefly reached a record high of around $94.7 per ounce before correcting. This suggests profit-taking is beginning to emerge after being pushed to extremes, although safe-haven interest has not disappeared from the market.
The next focus will be on US data this week, particularly PCE inflation, which is often used as a benchmark for the Fed's interest rate direction. If inflation data is lower, gold could benefit further. However, if inflation is high, gold could fluctuate as the market reassesses the likelihood of interest rates remaining high.
5 Key Points:
- Gold remains near a record high as the market seeks safety.
- Greenland is a key driver of rising geopolitical tensions.
- Trump's tariff threats increase the risk of a US-Europe trade war.
- Silver briefly hit a record high, then corrected due to profit-taking.
- The market awaits US PCE data for clues on the Fed's interest rate direction. (asd)
Source: Newsmaker.id
