This morning, as soon as the market opened, I saw that the gold price jumped by about 3% and is now at $4,867.
The market is not operating according to common logic.
The market is now operating with "ego" and "power games".
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What is happening:
1. Trump's Greenland insistence vs. Europe's tariffs:
Trump's straightforward words are that he wants Greenland. If necessary, by force, the son of a rich man will need Greenland.
Denmark or Europe will not sit still.
The result?
Trump has announced that he will impose a 10% tariff on 8 European countries from February 1. If there is no deal, it will increase to 25% in June.
The European Union is also ready, they are planning to impose counter-tariffs on $93 billion worth of American products.
Trump's trade war is now starting again!
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2. Danish Fund Slap and the Real Danger:
A historic event occurred yesterday.
The Danish pension fund "AkademikerPension" announced that it is selling all its US bonds (about $100 million).
Do you know what they said as the reason?
They said that America's financial situation is not good and they will not accept Trump's "bullying".
100 million may be a drop in the ocean. But the fear is elsewhere, European countries have a total of $10 trillion in US assets.
What if the rest of the world starts selling bonds after Denmark?
America's debt burden is now $36 trillion.
If everyone starts selling bonds together, the dollar will plummet, and America will be burdened by its own debt.
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3. Davos World Economic Forum meeting:
Today, Trump will give a speech in Davos, Switzerland.
He will meet with those he has abused and threatened today. Instead of calming down, the situation may get even hotter.
We may see a major incident by the end of the month.
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The truth is that big investors or countries are not buying gold out of curiosity.
They are buying "out of fear".
If European countries sell bonds, then they will naturally rush to gold for investment.
Who knows how much more drama the scapegoat will play!
