Gold hits record highs as tensions escalate between Washington and Brussels

Gold hits record highs as tensions escalate between Washington and Brussels

Gold continued its upward trend on Wednesday, driven by escalating geopolitical tensions between the United States and the European Union. Brussels' decision to freeze trade negotiations with Washington boosted investor demand for safe-haven assets, although the precious metal later pared some of its gains during the session. This market movement followed the European Parliament's approval of a freeze on the trade agreement with the United States. This freeze was a response to threats from US President Donald Trump to impose tariffs on European countries due to their opposition to Washington's efforts to control Greenland, a territory belonging to Denmark. Although Trump ruled out the use of military force to achieve this objective in his remarks today, he emphasized during a speech at the Davos Economic Forum that the United States is the only entity capable of "protecting Greenland." This speech reignited European concerns about shifts in US policy toward its tr…