Gold’s explosive surge and the sharp fall in global equities send a blunt message from markets: investors now believe US President Donald Trump could act on taking Greenland, warns the CEO of one of the world’s largest independent financial advisory organisations. The warning from deVere Group’s Nigel Green follows a dramatic weekend of escalation after the US president said he would impose tariffs on eight European countries, including Germany, France and the UK, from next month unless they support his ambition to take control of the Arctic island. Markets reacted with speed and force.
Gold jumped as much as 2.1% to a record $4,690 per troy ounce, while silver surged 4.4% as investors rush into havens. European equities opened sharply lower, with the Stoxx Europe 600 down 1.5%. US futures tracking the S&P 500 and Nasdaq 100 fell 0.9% and 1.2% respectively, even with US cash markets closed for Martin Luther King Jr Day.
Nigel Green says: “Markets are delivering a verdict on credibility. It seems by the current positioning that investors believe that the president is prepared to move from threat to action. “Gold doesn’t, typically, behave like this on headlines alone.
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It moves like this when markets believe follow-through is coming.” He says the move into precious metals reflects conviction rather than caution. “The scale and speed of the rally show investors aren’t waiting for confirmation. “Capital is already positioning for tariffs, retaliation, and a deterioration in relations between the US and Europe.” The Greenland dispute marks a different order of risk to previous trade tensions.
This blends economics with territory and national security. Markets historically treat that combination as more destabilising and far harder to unwind. Greenland’s strategic importance to Arctic shipping routes, natural resources, and military positioning raises the stakes.
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