Gold prices resumed to break records, opening this week’s trading on a notable increase of 2% to hit a new record high of $4690 per ounce.
Gold is currently trading above the first weekly resistance level at $4652, seeking to stabilize above it to continue breaking new records, targeting the second weekly resistance level depicted at $4708.
If the yellow metal falls below the minor bullish channel’s lower line (in orange), it is likely to start forming a corrective downward wave that could extend towards support levels of $4530 then $4465.
In terms of economic events, On Saturday, Trump said he would place 10% tariffs on eight EU members—Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway, and the United Kingdom—until the U.S. can buy Greenland.
Should the U.S. not succeed in buying the massive semi-autonomous Danish territory, Trump added that the levies would increase to 25% in June. In response, the EU is considering a €93bn tariffs in retaliation.
Notably, Trump has lobbed this new tariff volley at a time when the U.S. Supreme Court is anticipated to deliver a ruling on the legality of the U.S. President’s sweeping levies on Tuesday.
Markets widely expect the Supreme Court will strike down Trump’s use of an international emergency economic powers law instituted in the 1970s to impose the tariffs, with the betting website Polymarket showing only a 31% that the justices will side in his favor.
Besides that, Donald Trump is expected to meet global business leaders in Davos on Wednesday, sources familiar with the matter said, as the U.S. President’s presence looms large over the annual gathering of the global elite in Switzerland.
On the economic front, Investors are also awaiting the U.S. Core Personal Consumption Expenditures index (PCE), the Fed’s favorite inflation measure. Analysts expect annual Core PCE inflation to ease to 2.7% in November from a previous 2.8%.
Also, the U.S. will release its final GDP reading for the third quarter of 2025, with analysts expecting a 4.3% growth, following a 3.8% expansion in the third quarter.