Gold futures opened at $4,633.70 per troy ounce on Tuesday, marking a 0.8% increase from Friday's closing price of $4,595.40. In early trading, the price rose more than 2%, exceeding $4,700 per ounce for the first time.
This price movement followed weekend threats from President Trump, who posted on Truth Social that new tariffs would be imposed on eight countries unless they support a U.S. purchase of Greenland. Trump described acquiring Greenland as imperative to U.S. national security.
Greenland is an autonomous territory of the Kingdom of Denmark. Leaders from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland have aligned in support of Greenland's sovereignty, with some sending military personnel to the island.
President Trump stated these countries will face a 10% tariff starting February 1, escalating to 25% on June 1. The tariffs will remain until the U.S. secures a deal to purchase Greenland.
Renewed trade war threats and potential military conflict in Greenland have increased safe-haven demand for gold.
The opening price on Tuesday showed a 0.8% gain from Friday's close. Compared to previous periods, the opening price was up 1.2% from one week ago, 6.5% from one month ago, and 69.4% from one year ago. Gold's one-year gain on December 29 was 74.5%.
Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets, commented on price risk, saying, "Buying high to hope for short-term higher is a tough strategy." He noted gold is recovering from decades of low prices and is increasingly popular as a diversification asset.
Alex Tsepaev, chief strategy officer of B2PRIME Group, explained, "Gold should not be seen as a driver of supercharged returns — it's there to act primarily as a stabilizer in a diversified portfolio."
Thomas Winmill, portfolio manager at Midas Funds, encouraged investors to view gold positions as speculative, stating commodity prices depend on unpredictable macroeconomic, political, industrial, and financial factors.