XAU/USD maintained its record high above $4,660 after it managed to create an 'ATH' amid ongoing geopolitical and economic conflict.
At 9 am, gold prices were at $4,670, stable since they opened early Tuesday in Asian trading.
US President Donald Trump on Saturday announced plans to impose new tariffs on imports from eight European countries that rejected his proposal regarding the acquisition of Greenland.
The countries involved are Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom.
The announcement sparked concerns about the risk of a wider trade war, thus increasing demand for traditional safe-haven assets such as gold.
The trade tensions have also increased global market volatility in the short term.
At the same time, the European Union is reportedly considering retaliatory measures by implementing a €93 billion tariff package on imports from the United States. This potential move adds pressure to transatlantic trade relations and market sentiment.
Gold prices continued to hit new highs, supported by increased demand as a safe-haven asset amid concerns over US trade policy and geopolitical risks. The precious metal remained supported as investors shifted to defensive assets.
Meanwhile, most analysts expect the US Federal Reserve to end its monetary easing campaign by the end of this month as the labor market remains stable.
The market is now pricing in just under a 5% chance of a rate cut at the Fed's January policy meeting, according to CME FedWatch data.
Morgan Stanley also updated its monetary policy outlook for 2026, expecting rate cuts in June and September, respectively, compared to earlier expectations in January and April.
Expectations that the Fed will keep interest rates high for an extended period of time continue to support the strength of the US dollar, putting pressure on non-interest-bearing assets such as gold.
