As of 10:03 A.M. (GMT + 7), the global gold price (Spot XAU/USD) surged significantly by 1.57%, or $72.12, to $4,667.17 per ounce, after reaching the record high of $4,690 in early session. This advance occurred amid a wave of safe haven buying from investors concerned about rising trade and geopolitical tensions between the United States and Europe.
This development followed the announcement by the U.S. President Donald Trump, who announced that the U.S. would impose an initial import tariff of 10% on goods from several European countries, effective from February 1, 2026, with the possibility of raising it to 25% from June 1, 2026, if the U.S. is not allowed to purchase Greenland.
This move has been widely criticized by several European Union member states, who see such tariffs as a pressure tactic that could undermine the U.S.-European relations and increase strain on the global economy.
The Guardian also reported that the European Union is considering policy measures in response to the U.S. tariffs, including the reintroduction of retaliatory tariffs worth about €93 billion and the possible use of unprecedented economic protection tools, should the U.S. proceed with these measures.
Analysts assess that the rising uncertainty in global geopolitics and trade has led to increased demand for safe haven assets such as gold and other safe currencies, as reflected in gold’s uptrend in this morning’s trading.
