Gold prices rose to a fresh record above $4,700 per ounce on Tuesday, driven by strong haven demand amid renewed US-EU trade tensions. Reports on Monday indicated that Denmark is increasing its military presence in Greenland as President Trump refused to rule out using force to secure control of the island. This follows Trump’s threat to impose an additional 10% import tariff on eight European countries starting February 1, potentially rising to 25% in June unless the US is allowed to acquire the island. EU leaders are set to discuss countermeasures at an emergency summit on Thursday. Meanwhile, investors are eyeing the delayed US PCE inflation report due later this week, which could provide more clues on the Federal Reserve’s rate path. Gold’s strong performance this year builds on exceptional gains in 2025, fueled by safe haven flows amid tensions in Venezuela and Iran, as well as lingering concerns about the Fed’s independence.
