Gold prices edged higher during early Asian trading on Tuesday, trading at record highs as investors sought refuge in safe-haven assets amid persistent geopolitical and economic uncertainty, following fresh tariff threats from United States President Donald Trump.
By 3:15 pm AEDT (4:15 am GMT), spot gold prices were up 0.2% at US$4,681.36 an ounce.
The move came after Trump said on Saturday that the United States would impose new tariffs on imports from eight European countries that oppose his plan to acquire Greenland.
The countries named include Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom.
The announcement stoked fears of a broader trade conflict and lifted demand for traditional safe-haven assets such as gold.
Adding to market unease, reports suggest the European Union is considering retaliatory measures, including a €93 billion (A$161.3 billion) package of tariffs on U.S. imports.
Attention is also turning to the U.S. Federal Reserve’s upcoming policy meeting. Markets are currently pricing in a 5% chance of a rate cut at the January meeting, according to the CME Group FedWatch Tool.
Expectations that the Fed will keep interest rates higher for longer tend to support the U.S. dollar and weigh on non-interest-bearing assets such as gold, potentially limiting further upside despite the current safe-haven demand.
