by Stefan J. Bos, Worthy News Europe Bureau Chief
DAVOS, SWITZERLAND (Worthy News) – Gold prices surged to a record high on Wednesday as investors sought safety the deepest crisis in the transatlantic alliance in decades with U.S. President Donald J. Trump saying Europe “is not heading in the right direction.”
The precious metal climbed more than 2 percent as geopolitical tensions rattled markets, while broader financial markets steadied. In the U.S., Wall Street stocks were set to open slightly lower after suffering heavy losses a day earlier, according to market sources.
The turmoil comes as European governments weigh how — or whether — to respond to Trump’s threat to impose 10 percent tariffs on eight European countries that recently sent military personnel to Greenland, an Arctic territory the U.S. president has openly said he wants to bring under American control.
TRUMP CRITICISES EUROPE AT DAVOS
Trump made his remarks in a closely watched address to the World Economic Forum in Davos, Switzerland, as tensions between Washington and Europe continued to escalate.
After declaring that the United States “is the economic engine of the planet,” Trump delivered a sharp critique of Europe, saying, “Certain places in Europe are not even recognisable anymore, frankly.”
“I love Europe… but it’s not heading in the right direction,” he told the audience.
Before departing the United States, Trump had doubled down on his Greenland ambitions, saying “there can be no going back” on his plans. When asked how far he would be willing to go to secure the Arctic island from Denmark, he replied, “You’ll find out.”
MARKETS REACT, ALLIES UNEASY
Gold’s rally underscored investor anxiety as diplomatic tensions intensified. Analysts say the rush into safe-haven assets reflects fears that a prolonged standoff between the United States and Europe could spill over into trade, security, and financial markets.
The European Union is considering to hit the U.S. with 93 billion euros ($108 billion) worth of tariffs or restrict American companies from the bloc’s market in response to U.S. President Donald Trump’s threats to NATO allies opposed to his campaign to take over Greenland,
These options are being examined under the EU’s Anti-Coercion Instrument (ACI) — a legal tool designed to respond to economic pressure from third countries.
Signs of strain were also visible on the sidelines of the Davos meetings. On Tuesday evening, U.S. Commerce Secretary Howard Lutnick was reportedly heckled during a private dinner after making combative remarks, prompting several high-profile attendees to leave early.
CRITICISM FROM U.S. AND NATO FIGURES
Among those departing was European Central Bank President Christine Lagarde, according to people familiar with the incident.
Prominent U.S. voices also expressed concern. Billionaire Republican donor and hedge fund manager Ken Griffin criticized Trump’s foreign policy stance, saying the United States has “frayed our relationship with our European allies in ways that I don’t understand or appreciate.”
Even NATO Secretary-General Mark Rutte warned that the military alliance members that the dispute over Greenland risks diverting attention from Russia’s war in Ukraine, though he sought to reassure allies by insisting that “Europe is safe.”
As diplomatic tensions simmer and markets react, observers say the spike in gold prices reflects growing uncertainty over the future of U.S.-European relations — and fears that the current standoff may be far from over.
Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
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