FX168 Financial News Agency (Asia-Pacific) reported that during the late Asian trading session on Tuesday (January 20), spot gold prices surged sharply in a short period, with the price just breaking through the $4,700 per ounce mark. In terms of developments, U.S. President Trump threatened to impose a 200% tariff on French wine and champagne, further escalating geopolitical tensions and fueling risk aversion.
The spot gold price has currently reached a high of $4,701.58 per ounce, setting a new historical record.
(15-minute chart of spot gold, source: 24K99)
Bloomberg News reported on Tuesday that U.S. President Donald Trump criticized French leader Emmanuel Macron for rejecting his invitation to join the proposed ‘Board of Peace’ and hinted that he might impose a 200% tariff on champagne.
(Original source: Bloomberg)
On Monday local time, after learning that Macron would reject his invitation, Trump told reporters: ‘Well, no one wants him because he will be out of office soon.’
Trump added: ‘I will impose an additional 200% tariff on his wine and champagne, and then he will join.’
Macron’s second term is scheduled to end next year, and he has repeatedly vowed not to step down early.
The Trump administration is requesting that countries seeking permanent membership in the organization contribute at least $1 billion. According to a draft of the proposed organizational charter seen by Bloomberg, Trump will serve as the first chairman of the organization and have the authority to decide on membership.
A person close to the French president previously stated that Macron does not intend to accept the invitation. The individual said that Macron believes the scope of the charter extends beyond Gaza and raises significant concerns, particularly regarding whether it respects the principles of the United Nations and its institutional framework — which France considers non-negotiable red lines.
Trump also confirmed that Russian President Vladimir Putin had been invited to join the committee but did not elaborate further.
Trump has invited several world leaders to participate in a ‘Gaza Peace Board,’ which will operate under the broader framework of his newly established ‘Board of Peace.’ According to informed sources, several European countries have also received invitations to join the peace board.
Sources familiar with the matter said that Trump hopes to sign the full charter and mandate of the committee in Davos on Thursday. However, some of the details have made invitees hesitant about whether to accept.
Critics are concerned that Trump is attempting to create an alternative or rival institution to the United Nations—an organization he has long criticized.
Precious metal prices surged significantly this year following a sharp increase in 2025. The U.S. arrest of Venezuela’s leader and doubled threats to annex Greenland fueled the rise in precious metal prices. The Trump administration also renewed its attacks on the Federal Reserve, heightening concerns over the Fed’s independence and fueling currency devaluation trades as investors, worried about debt levels, sold off currencies and government bonds.
Last week, gold ETF holdings increased by 28 tons, marking the largest weekly gain since September. Market analysts remain bullish on gold’s outlook, with Citigroup forecasting that gold prices will reach $5,000 per ounce within three months, while silver prices could hit $100 per ounce.
In an effort to push forward the annexation of Greenland, the Trump administration pressured eight European allies, including France, Germany, and the UK, who opposed the plan. The U.S. announced a 10% tariff on these countries starting February 1, with plans to raise the rate to 25% in June. This move triggered fears of a severe trade war between the U.S. and Europe, leading to a weaker dollar and boosting safe-haven demand for precious metals.
According to the Financial Times, French President Emmanuel Macron called on the EU to activate its strongest trade weapon against the U.S., following threats by U.S. President Trump to impose additional tariffs on multiple European nations due to the Greenland dispute.
A French presidential official said on Sunday that Macron would request the EU to activate the so-called “anti-coercion instrument,” which can restrict U.S. companies’ access to the EU single market. Introduced for the first time in 2023, the tool has never been used but allows the EU to implement countermeasures against “economic coercion” imposed by other countries, such as punitive tariffs.
At 13:13 Beijing Time, spot gold was trading at $4,700.56 per ounce.