FX.co ★ Gold Climbs to Fresh Record

Gold continued its upward trajectory, surpassing $4,780 per ounce on Wednesday to reach a new all-time high. This increase is driven by heightened demand for safe-haven assets as tensions surrounding Greenland intensified. During the World Economic Forum in Davos, President Donald Trump reaffirmed his intention to acquire the Arctic island, prompting Greenland’s prime minister to advise citizens to brace for a possible, though unlikely, military action. This development comes in the wake of Trump's threat to impose an additional 10% import tariff on certain European countries starting February 1, with a potential increase to 25% by June if an agreement over the island is not reached. Amplifying the allure of gold as a safe investment are concerns ignited by a downturn in Japanese government bonds, which raises alarms about the fiscal stability of major economies and fuels the "debasement trade" as investors retreat from currencies and sovereign debt. Investors are also anticipating the release of the postponed US PCE inflation report later this week, which could offer more clarity on the Federal Reserve’s stance regarding interest rates.