Atlantic Trade Tensions Rise... Gold Surges Past $4,700 to Record High

The price of gold, a representative safe-haven asset, surpassed $4,700 per ounce on January 20, continuing its record-breaking rally.

This surge in demand for safe assets is attributed to heightened concerns over a potential trade war between the United States and Europe, following President Donald Trump's proposal to incorporate Greenland, a Danish territory, into U.S. territory, and Europe's opposition to the move.

According to Bloomberg News, as of 2:56 p.m. Singapore time, the price of gold had risen 0.9% from the previous session, reaching $4,714.5 per ounce.

Reuters Yonhap News

The market is closely monitoring Europe's response after President Trump threatened to impose tariffs on eight European countries that expressed opposition to the U.S. annexation of Greenland.

Attention is also focused on the World Economic Forum (WEF, also known as the Davos Forum), where President Trump has announced plans to discuss the Greenland issue.

Experts analyze that the market has become unsettled as the United States threatens its North Atlantic Treaty Organization (NATO) allies, fueling risk aversion and a renewed wave of 'selling America' sentiment as investors seek safe-haven assets.