Trump Pushes for Greenland Acquisition, U.S.-Europe Trade War Looms as Gold and Silver Prices Rise
The price of gold per ounce broke through 4,700 U.S. dollars, setting a new record, while silver prices also reached historical highs. This surge was mainly due to U.S. President Trump's push for the acquisition of Greenland, which has raised concerns about a potential U.S.-Europe trade war.
Bloomberg reported that the market is watching how Europe will respond to Trump's threat to impose tariffs on eight European countries that oppose his Greenland plan.
Additionally, when Trump attended the 56th World Economic Forum annual meeting held in Davos, Switzerland, he stated that he would hold meetings with multiple parties to discuss his plan to take over Greenland, and investors are closely watching the subsequent developments. Silver prices hit a new high of 94.7295 U.S. dollars per ounce at the opening.
U.S. threats against NATO allies have caused market turbulence and increased demand for safe-haven assets. French President Macron plans to request the activation of the EU's counter-coercion mechanism, but German Chancellor Merkel said she is trying to persuade Macron to moderate her response.
Peter Kinsella, head of global foreign exchange strategy at Union Bancaire Privée, told Bloomberg Television: "We have entered an era of resource nationalism among major powers."
He believes that currency may not be the best tool to deal with such geopolitical themes, emphasizing that gold remains a worthwhile bet.
The Greenland crisis followed the U.S. seizure of Venezuelan leaders, further boosting the already hot precious metals market. Trump's new wave of criticism against the U.S. Federal Reserve has also made people more concerned about the independence of the Fed, thereby supporting the rise in gold and silver prices this year.
Source: rfi
Original: toutiao.com/article/1854882289573892/
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