Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors into safe havens, leading to a sharp increase in demand for precious metals. Trump said the initial 10% tariff would take effect on February 1, 2026, and then rise to 25% in June 2026. This threat sparked fears of retaliation from Europe, which could escalate into a full-blown trade war a situation such as this typically increases demand for gold and silver. European leaders are reportedly set to...
The Australian dollar (AUD) held strong at the start of the week after strong Australian inflation data, while the US dollar weakened as market sentiment grew cautious due to the US-Greenland dispute. This combination kept the AUD/USD pair stable and prevented significant declines. Strengthening in Australia came from the TD-MI Inflation Gauge, which rose to 3.5% YoY in December, from 3.2% previously. On a monthly basis, inflation jumped 1.0% MoM reportedly the fastest pace since December 2023. This data led the market to believe that price pressures in Australia had not yet fully...
The US dollar weakened at the start of the week after tensions between the United States and the European Union escalated over the Greenland issue. Markets assessed that the political conflict, which has escalated into tariffs, has the potential to disrupt transatlantic trade relations, increasing pressure on the dollar. The US Dollar Index (DXY) fell around 0.25% and moved between 99.10 and 99.15. This weakening occurred as investors began reducing exposure to dollar-based assets and shifting to currencies perceived as safer amid growing geopolitical uncertainty. The main trigger came...