Gold climbed to a new record high above $2,450 per ounce as former President Donald Trump’s renewed tariff threats tied to Greenland triggered investor anxiety. Asia-Pacific equities declined sharply, with Japan’s NKY falling 2.3% and China’s CSI 300 dropping 1.8%, while U.S. indices SPX and DJIA also posted losses.
- Gold futures (GC=F) reached a record high of $2,452.70 per ounce
- Japan’s NKY fell 2.3%, China’s CSI 300 declined 1.8%
- U.S. SPX and DJIA dropped 1.4% and 1.2% respectively
- USD/JPY rose to 154.85 amid safe-haven demand
- Copper (HG=F) and crude oil (CL=F) declined 1.6% and 0.9%
- Geopolitical rhetoric from Trump sparked immediate market repricing
Global financial markets reacted sharply to escalating geopolitical tensions following former President Donald Trump’s public remarks linking Greenland to potential U.S. trade actions. The comments, made during a campaign rally in Florida, suggested that Greenland could be subject to new tariffs if it did not align with U.S. strategic interests, sparking fears of a broader trade escalation. This prompted a flight-to-safety move, driving the COMEX gold futures contract GC=F to a new all-time high of $2,452.70 per ounce—up 2.1% in a single session. Asia’s major indices mirrored the U.S. downturn. Japan’s Nikkei 225 (NKY) dropped 2.3% to close at 38,614.80, while South Korea’s KOSPI fell 1.9%. China’s CSI 300 index declined 1.8% amid concerns over supply chain disruptions. The U.S. S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) both fell 1.4% and 1.2%, respectively, with tech and materials sectors bearing the brunt of the sell-off. The U.S. dollar strengthened against key peers, with USD/JPY rising to 154.85, reflecting increased demand for safe-haven currencies. Commodities outside gold also showed volatility: copper (HG=F) fell 1.6% on reduced growth sentiment, while crude oil (CL=F) dipped 0.9% as traders weighed the impact of geopolitical risk against slowing demand projections. Market participants are now closely monitoring potential policy shifts, especially as Trump’s rhetoric gains traction ahead of the 2028 presidential cycle. Analysts warn that such statements—though non-binding—can influence investor behavior and trigger rapid repricing in asset markets, particularly in commodities and exchange-rate-sensitive equities.