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Gold resumed gains and touched a new record high on Monday as the U.S. dollar weakened against most of its major peers following President Donald Trump's latest tariff threats against Europe over Greenland.
Spot gold traded up 1.6 percent at $4,669.82 an ounce, after having hit a high of $4,690.75 in early Asian trade. U.S. gold futures were up 1.7 percent at $4,674.09.
The dollar index was under pressure, as investors shifted toward safe-haven assets such as the Japanese yen and the Swiss franc, reflecting a risk-off sentiment in financial markets.
Trump vowed to slap a 10 percent tariffs on eight European nations starting Feb.1, which could rise further to 25 percent in June unless the U.S. is allowed to buy Greenland.
Major European Union states decried the tariff threats over Greenland as blackmail on Sunday, with French President Emmanuel Macron asking the EU to activate its "anti-coercion" measure - dubbed its trade "bazooka" - for the first time, injecting fresh trade uncertainty.
Trump today doubled down on his plan to acquire Greenland, saying NATO had warned Denmark for years about the "Russian threat" to Greenland and claimed Copenhagen had failed to act.
"Now it is time, and it will be done!!!" Trump wrote in a post on his Truth Social platform ahead of this week's World Economic Forum Annual Meeting in Davos.
Meanwhile, it is feared that Trump's threats and diplomacy toward Iran and Venezuela, using military pressure, sanctions and public messaging will have profound long-term costs for his country and the world.
Venezuelan opposition leader Maria Corina Machado's decision to give her Nobel Peace Prize medal to Trump has sparked controversy and criticism.
In Iran, President Masoud Pezeshkian has warned that any attack on Supreme Leader Ayatollah Ali Khamenei would trigger an all-out war.
Speaking to Politico on Saturday, Trump said, "It's time to look for new leadership in Iran."
Beyond tariff and geopolitical concerns, traders await U.S. PCE, GDP and jobless claims reports this week for cues on the Federal Reserve's rate outlook.
