Gold has hit a record high after Trump’s extra tariff plan announced over the weekend

Gold has skyrocketed to a new all time high above US$4680.

The safe haven bid is in response to Trump announcing his plan for more tariffs as his dispute with the rest of the world over Greenland escalates.

ICYMI:

The European Union is stepping up efforts to contain a rapidly escalating trade dispute with Washington after U.S. President Donald Trump threatened to impose punitive tariffs on European allies unless the United States is allowed to purchase Greenland.

EU diplomats said member states are now pursuing a dual-track strategy: intensifying diplomatic outreach to the U.S. while accelerating preparations for retaliation if talks fail. The issue will be a central focus at an emergency EU leaders’ summit in Brussels on Thursday.

Trump announced over the weekend that tariffs of 10% would be imposed from February 1 on a group of European countries — including Denmark, France, Germany and Sweden — rising to 25% from June unless Washington’s Greenland demands are met. European officials have condemned the move as economic pressure directed at close allies.

In response, Brussels is revisiting a dormant package of countermeasures targeting €93 billion of U.S. imports. The tariffs were suspended last August under a temporary trade arrangement with Washington but are scheduled to automatically take effect on February 6 unless a new agreement is reached.

EU leaders are also considering whether to deploy the bloc’s Anti-Coercion Instrument, a powerful but as-yet unused tool that would allow the EU to restrict U.S. access to public procurement, investment opportunities, financial services and parts of the digital economy. While some capitals favour activating the mechanism, diplomats say consensus remains elusive, with many governments preferring conventional tariffs as an initial response.

European Council President Antonio Costa said consultations showed strong alignment among member states in backing Denmark and Greenland and a willingness to push back against coercive trade actions, while keeping dialogue with Washington open.

Danish Prime Minister Mette Frederiksen said Europe would not yield to pressure, welcoming the unified stance from EU partners.

Further discussions are expected at the World Economic Forum in Davos, where Trump is due to appear this week. While EU officials continue to stress a preference for negotiation, they warn that the tariff threat risks reigniting market volatility and destabilising transatlantic trade relations if left unresolved.