Stocks hit and gold rallies on Trump-Europe fallout

Chris Beauchamp IG

The new front in the tariff wars caught stock markets on the hop, while boosting gold prices, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Trump-EU spat casts pall over European trading

The most compelling market selloffs always come from the unexpected. Few investors would have had ‘Trump demands Greenland in lieu of a Nobel’ on their list for 2026 predictions, but here we are. The move to new tariffs came out of nowhere over the weekend, and has duly delivered a modest selloff in global stock markets. The move was exacerbated by the quiet trading prevailing on a US holiday. But looking at things in context, this barely registers yet as a market event. While the VIX hit a seven-week high, it remains well off the November highs.

Gold at new record

At the moment, the reaction to any market event appears to be ‘buy gold and silver’. Today is no different. The longer this momentum-driven trade goes on, the greater the probability that the correction, if and when it comes, will be brutal. But in the same vein, it is futile to stand in front of an oncoming trade. Further trade escalation could see today’s highs taken out in the same way as so many others of late.

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Chris Beauchamp

EUR/USD climbs to daily highs, focus on 1.1650

EUR/USD now picks up extra pace, climbing past the 1.1640 level, or daily highs, as the US Dollar continues to lose momentum. The move follows fresh tariff threats from President Trump against eight European countries opposing his proposal to take Greenland. With US stock and bond markets closed for Martin Luther King Jr. Day, trading conditions are likely to remain thin.

GBP/USD advances to two-day tops near 1.3420

GBP/USD found its footing after a soft start to the week, edging modestly above 1.3400 the figure on Monday. The British Pound gathers steam on the back of a weaker Greenback, as markets continue to evaluate President Trump’s latest tariff threats against Europe over Greenland.

Gold: Is there a ceiling for XAU/USD?

Gold drew strong buying interest at the start of the week, surging to a fresh record high near $4,700 per troy ounce. Markets turned more cautious after President Trump threatened tariffs on eight European countries opposing his plan to acquire Greenland, a shift that helped underpin the yellow metal.

Dogecoin, Shiba Inu, Pepe in a freefall, echoing Bitcoin’s drop

Meme coins, such as Dogecoin, Shiba Inu, and Pepe, extend the decline from last week, with a roughly 3% drop on Monday. The meme coins trade below the crucial moving averages, aiming for the immediate support to potentially reset the momentum.

When tariffs become ammunition and capital becomes the battlefield

Markets opened the week like a risk engine hitting a pothole at speed. Equities stepped back, gold vaulted to fresh highs, Treasuries caught a bid, and the dollar, outside of havens, took on a soft bid. This was not a data-driven wobble or a valuation purge.