New Record! Gold Soars as Greenland Crisis Remains Unabated
Gold prices surged past $4,700 per ounce, setting a new record, while silver also hit an all-time high. The trigger is clear: the US-European standoff over control of Greenland shows no signs of abating, driving the market to increasingly risk-off and safe havens.
The market is now awaiting Europe's retaliatory measures after Trump threatened tariffs on eight European countries that reject his ambitions. At the same time, global markets were also shaken by a sharp decline in Japanese government bonds, which also dragged down global bond sentiment. The dollar's strength indicator also weakened, making precious metals even more attractive as they became cheaper for buyers outside the US.
These tensions were further fueled by the spotlight at Davos. Trump said he would meet with several parties to discuss his plan to take over the Danish territory. French President Emmanuel Macron is even said to want to push for the activation of the European Union's anti-coercion instruments, while Germany is trying to restrain its response to prevent it from escalating into a full-blown trade war. The Trump-Macron relationship also heated up after Trump posted a message criticizing Macron and then joined in the squabbling over tariffs on French wine and champagne.
In the markets, the gold rally has been overwrought: gold prices rose about 1.2% to $4,731 in London and briefly touched a record $4,737, while silver rose to around $95.50. But precisely because of the over-speed, questions are being raised: is it already "too expensive"? A survey of fund managers shows that many consider gold to be the most popular trade, with around 45% considering it overvalued—meaning that, amid the safe-haven euphoria, a potential correction could emerge at any time. (alg)
Source: Newsmaker.id
