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Trump Greenland threat triggers search for shelter beyond gold, defence

Investors piled into gold and European defence stocks after President Donald Trump's Greenland threats; gold rose over 4% last week and European defence stocks hit fresh all-time highs Monday.
President Donald Trump's Greenland ambitions raised fears it could end NATO and upend the global order, while the U.S. seizure of Nicolas Maduro and threats to indict Federal Reserve Chair Jerome Powell increased investor concerns.
Sweden's Saab surged 22% last week, with Jeremie Peloso saying `With the rhetoric about Greenland, the rally is being sustained`, while analysts warn political risk is hard to price, prompting gold hedges.
Short-Term flows favour the dollar and U.S. Treasuries as investors reckon gains may continue, but face a dilemma on how to position for any longer-term fallout.
It is too soon to see shifts in allocations, analysts say, though Idanna Appio remains nervous about money moving back to Europe and Asia, and many investors, including Ray Dalio, called for gold exposure last year.

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Trump Greenland threat triggers search for shelter beyond gold, defence

Investors have piled fresh bets on gold and European defence stocks in response to U.S. President Donald Trump's threats to take control of Greenland, fearing a geopolitical rift that could end NATO, shatter the global order and damage the dollar.

2 days ago·United Kingdom

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