Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold (XAU/USD) surged over 1.5% on Monday, approaching the $4,700 mark after geopolitical tensions between the United States and the European Union intensified over Greenland-related tariff threats. XAU/USD trades around $4,672, recovering from a four-day low recorded last Friday, as investors flock to safe-haven assets amid uncertainty and thin liquidity caused by the Martin Luther King Jr. holiday in the U.S.
Trump’s Tariff Threats Hammer the Dollar
President Donald Trump announced 10% tariffs on eight European nations, effective February 1, linked to Greenland negotiations, with the potential to rise to 25% by June. The move triggered a sell-off in the US Dollar while assets like Gold, Silver, the Japanese Yen, and the Swiss Franc saw strong inflows. The European Parliament also indicated it would freeze ratification of a previously agreed trade deal with the U.S., further fueling risk-off sentiment.
Market Reaction and Fed Outlook
The US Dollar Index (DXY) fell 0.36% to 99.02, while US Treasury yields rose, with the 10-year note yielding 4.227%. Traders are still pricing in 45 basis points of Federal Reserve easing through 2026 ahead of upcoming US GDP and Core Personal Consumption Expenditures (PCE) data. Meanwhile, Kevin Hassett withdrew from consideration for Fed Chair, with Kevin Warsh emerging as the current favorite.
Safe-Haven Appeal
Gold continues to benefit as a traditional hedge against inflation, currency depreciation, and market turbulence. Investors favor bullion during periods of geopolitical and macroeconomic uncertainty, underlining its role as a reliable store of value.
Market Movers:
US Dollar weakened amid tariff-driven fears.
European countermeasures could total €93 billion in tariffs.
Traders watch US economic releases for clues on Fed policy.
Safe-haven assets remain in demand, supporting Gold and Silver.
