WASHINGTON (dpa-AFX) - Extending the momentum from yesterday, gold prices soared to new highs on Wednesday as U.S. President Donald Trump stood firm on taking control of Greenland, intensifying the U.S.-EU standoff, even though he reassured he would not resort to the use of force.
Front Month Comex Gold for January delivery surged by $72.20 (or 1.52%) to $4,831.80 per troy ounce. Notably, this is a new high for gold prices, which have surged for two consecutive sessions.
Front Month Comex Silver for January delivery tumbled by $1.9960 (or 2.12%) to $92.210 per troy ounce.
At the World Economic Forum in Davos, Switzerland, Trump reiterated his intent to have full control of the semi-autonomous Danish territory of Greenland in the Arctic despite strong criticism from European nations.
Danish Prime Minister Mette Frederiksen asserted that Denmark would not yield to Trump's demands and abandon Greenland.
Days before, Trump warned eight European nations of imposing a 10% tariff from February 1 if they fail to support the U.S. on the Greenland issue. He further threatened to raise the levies to 25% around June 1 if the EU does not negotiate with the U.S.
Earlier this month, Trump directed U.S. forces to capture the President of Venezuela, Nicolas Maduro and extradite him to the U.S. where he is undergoing a trial on several criminal charges.
Sparked by concerns that Trump may attempt something similar in Greenland, leaders of the U.K., Canada, France, Spain and several other nations who met on the sidelines of WEF spoke out against Trump's coercive tactics.
Some European nations were preparing to sell U.S. assets as a sign of retaliation, leading to a weakening of the U.S. dollar while boosting safe-haven demand.
Today, in his keynote address at the WEF, Trump stressed that the U.S. is the economic engine for all nations on the planet. Trump claimed that U.S. inflation has been defeated ,with core inflation hovering only around 1.5%, though experts disagreed with his estimates.
Speaking about Greenland, Trump asserted that the U.S. must get control of the territory, but he reassured that the U.S. would not use force to achieve his goal. However, he warned NATO allies that they can say 'Yes' and the U.S. will be very appreciative or 'No' and the U.S. will 'remember.'
The U.S. Supreme Court deferred its ruling on the legality of Trump's authority to impose tariffs on various trading partners of the U.S., a high-stakes judgment which the global markets are awaiting. With an upcoming four-week recess on the anvil, the top court would likely pronounce the judgment on February 20.
Data released by the Mortgage Bankers Association of America today revealed that the Purchase Index in the U.S. increased to 194.10 points on January 16 from 184.60 points in the previous week.
In Europe, Russian forces struck Zaporizhzhia in Ukraine ,leaving around 1,500 households without electricity. Russia has stepped up its attack on energy, power, and other critical infrastructures in Ukraine.
Envoys of Trump and Russian President Vladimir Putin are set to meet in Davos at the WEF to discuss the U.S.-proposed peace deal, which has not seen any breakthrough for weeks. Ukraine President Volodymyr Zelenskyy urged the U.S. to put pressure on Russia.
In Iran, the regime of Supreme Leader Ayatollah Ali Khamenei has cracked down on protestors who took to the streets against the clerical rule since late December. The demonstrations have been curtailed for now after reportedly thousands were killed in the clashes between the citizens and security agencies.
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