FX.co ★ Gold Hovers Near Record High

Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. This strength is attributed to heightened demand for safe-haven assets amid escalating trade frictions between the United States and the European Union. Recent reports reveal that Denmark is bolstering its military presence in Greenland after President Trump did not dismiss the possibility of using force to control the territory. This situation comes on the heels of Trump threatening to impose an additional 10% import tariff on goods from eight European nations, effective February 1, with the possibility of increasing to 25% by June unless the US secures acquisition rights for Greenland. In response, EU leaders plan to discuss potential retaliatory measures at an emergency summit scheduled for Thursday. In parallel, market participants are closely monitoring the forthcoming US Personal Consumption Expenditures (PCE) inflation report, anticipated later this week, which might offer further insight into the Federal Reserve's interest rate trajectory. Gold's robust performance this year builds upon remarkable gains recorded in 2025, spurred by safe-haven demand amid geopolitical tensions involving Venezuela and Iran, along with persistent concerns about the Federal Reserve's autonomy.