Trump repeatedly made wild remarks about Greenland, geopolotical uncertainty rises with lower interest rate expectations, gold price crossed the $4500 mark.

President Trump once again made tough remarks on the Greenland issue on Friday, stating that the U.S. "will take action on Greenland whether they like it or not." This statement has heightened geopolitical tension and resonated with expectations of a Fed rate cut in the financial markets, pushing gold prices higher. Trump told reporters at the White House that he would prefer to reach an agreement in a "friendly manner," but if that is not possible, then "we have ways that are a lot tougher." He emphasized that Greenland has critical strategic importance for national security. Greenland is currently part of Denmark. Danish officials and their European allies in the North Atlantic Treaty Organization have repeatedly stated that Greenland is "not for sale." However, U.S. officials have revealed that the Trump administration is still considering various options, including direct purchases, increasing military presence, and even providing cash compensation to local residents. Regarding whether economic measures will be used to push forward the process, Trump only stated, "It's not the time to talk money right now," but reiterated that the U.S. will take action on Greenland "one way or the other." He also pointed out that the U.S. has a military base in Greenland and the capability to expand troops, but he believes that "renting and owning are two different things," and that "only ownership can truly defend." Analysts point out that amidst rising global geopolitical uncertainties, Trump's remarks have further strengthened market risk aversion sentiment, providing additional support for safe-haven assets like gold. At the same time, the latest U.S. employment data has become an important factor driving gold prices higher. U.S. Bureau of Labor Statistics data shows that nonfarm payrolls increased by only 50,000 in December, lower than the expected 66,000; the unemployment rate fell to 4.4%, and wages increased by 0.3% month-on-month. The market generally believes that although job growth has slowed, it still remains resilient overall, providing policy space for the Federal Reserve to start a rate cut in early 2026. Gina Bolvin, President of Bolvin Wealth Management Group, stated in a report that this data combination "reinforces the market's judgment that the labor market is cooling down as planned, and solidifies expectations for a rate cut in early 2026." Neil Welsh, Director of Metals at Britannia Global Markets, said that the slowdown in job growth, a slight decrease in the unemployment rate, and a weaker U.S. dollar have collectively provided new support for gold prices. "Inflation stickiness may slow down the pace of rate cuts, but is unlikely to completely stop them, which means that the suppression of real yields on gold will continue to ease." However, some analysts caution that gold prices still face risks in the short term. The upcoming release of the U.S. Consumer Price Index (CPI) next week may cause market volatility, and if inflation levels remain high, it could delay rate cut expectations, limiting the short-term increase in gold prices. Despite this, the market overall remains optimistic about the medium-term outlook for gold. Aaron Hill, Chief Market Analyst at FP Markets, believes that weaker-than-expected nonfarm data is strengthening the bullish logic for gold, and he predicts that gold prices may operate in the range of $4550 to $4600 in the short term. Lukman Otunuga, Analyst at FXTM, points out that once gold prices effectively break through $4500, it will open up space to challenge historical highs. At the close of Friday, spot gold rose 0.72% to $4509.73.