Gold Hits Record as Trump’s Greenland Tariff Threats Rattle Asian Markets

Gold prices surged to a record high on Wednesday as Asia-Pacific markets slipped, with investors seeking safe havens after U.S. President Donald Trump threatened fresh tariffs linked to his push for U.S. control of Greenland.

Spot gold climbed more than 1% to an all-time high of $4,813 per ounce, reflecting growing unease over escalating trade tensions and geopolitical uncertainty.

Asian equity markets were mostly lower. Hang Seng Index fell 0.12%, while China’s CSI 300 edged 0.11% higher. Japan’s Nikkei 225 dropped 1.28%, with the broader Topix down 1.09%. South Korea’s Kospi slid 1.09%, while the Kosdaq fell 2.2%. Australia’s S&P/ASX 200 declined 0.34%.

Market jitters followed Trump’s warning that exports from eight European countries could face 10% tariffs from February 1, rising to 25% by June, unless negotiations result in U.S. control of mineral-rich Greenland. He also threatened 200% tariffs on French wine and champagne after France signalled it would not join his proposed “Board of Peace.”

European leaders have described the threats as unacceptable and are weighing countermeasures. France is reportedly urging the European Union to activate its Anti-Coercion Instrument, which allows for punitive economic responses to political pressure.

Wall Street saw sharp losses overnight. The Dow Jones Industrial Average fell 1.76%, the S&P 500 dropped 2.06%, and the Nasdaq Composite slid 2.39%, marking their worst session since October. U.S. Treasury yields rose while the dollar weakened, signalling a broader pullback from U.S. assets.

U.S. stock futures edged slightly higher during early Asian trading, though analysts cautioned that markets remain vulnerable to further volatility as trade tensions intensify.