FX.co ★ Platinum Hovers Near Record Highs

Platinum futures experienced a slight decline, settling at approximately $2,340 per ounce, although they remained close to record highs. This stability is driven by increased demand for precious metals as a safe haven amid escalating tensions between the US and Europe. The tensions have been fueled by President Trump's controversial suggestion of acquiring Greenland, which has raised geopolitical concerns. Trump has proposed implementing a 10% tariff on eight European nations effective February 1, with the possibility of increasing it to 25% by June if the acquisition does not materialize. In response, Denmark has bolstered its military presence on Greenland. The markets are now focused on Europe’s forthcoming response, as its leaders convene for an emergency summit this Thursday to discuss potential retaliatory measures. Analysts have cautioned that Europe, which holds approximately $10 trillion in US bonds and stocks, including holdings by public sector funds, could leverage these assets in the unfolding trade conflict. Concurrently, platinum prices have experienced fluctuations, particularly after President Trump's decision against imposing tariffs on critical minerals like platinum. Instead, he has directed his administration to seek international trading partners for supply.