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EU Suspends Approval of US Trade Deal

The European Parliament has suspended⁤ the approval of a key US ​trade deal agreed ‌in July in​ protest ‍at Donald Trump’s demand too take over Greenland.

the suspension was​ announced in Strasbourg, France, on Wednesday, as the US president ⁤addressed⁤ the World Economic Forum in Davos.

The move marked a fresh escalation in tensions between ⁢the US and Europe, as Trump continues to‌ threaten tariffs against​ European countries in his bid to acquire Greenland.

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Gold Price Reaches New Record High

The price ⁣of gold surged to a new all-time high, exceeding ⁤$4,842 per ounce on January 21, ⁢2026, continuing a trend of significant gains. Silver prices also remain elevated,‌ trading near record levels.

Factors Driving the Gold Price Increase

Several factors contribute to gold’s recent price ⁢surge, ​including geopolitical instability, inflation concerns, and central bank‍ policies. Investors⁣ frequently ​enough turn to ⁣gold as a safe-haven asset during times of economic ⁣uncertainty. Increased demand from central banks, particularly those ​diversifying away from the U.S. dollar, also plays a role.

According to a report ​by the World Gold Council, central bank gold purchases reached a record 1,800 tonnes in 2023, demonstrating⁣ a​ strong appetite for the precious metal. This trend continued into 2024 and 2025,further bolstering prices.

Silver’s Performance and Relationship to Gold

Silver, often considered a hybrid between a precious and industrial metal, has also experienced price‍ increases, though not as dramatic as gold. Silver typically moves in correlation with gold, but its price ​is also influenced by industrial demand, particularly in the electronics and solar panel industries.

As of January 21,2026,silver was trading around $94.50 per ounce, slightly below its recent peak of $95. ⁢ Data from Kitco shows a consistent upward trend in silver prices over the past ⁤year, driven by both investment and industrial demand.

Impact on Investors and the Economy

The rising price of gold and⁢ silver ⁤impacts investors holding ⁣these assets, as well as the broader economy. Higher gold prices ‌can benefit gold mining companies, while increased silver demand⁢ supports the silver industry. However,⁤ sustained high prices can also contribute to inflationary pressures.

The U.S. Bureau of Economic Analysis reported ⁤in its Personal Consumption Expenditures Price⁤ Index ⁤data released January 15, ‌2026, that precious metal prices contributed 0.15% to the overall inflation rate in December 2025.

Future Outlook

Analysts predict continued volatility in the gold and silver markets. Geopolitical events, economic data releases, and central bank ⁣actions will likely be key drivers of price movements. Many ‌analysts forecast gold to potentially reach $5,000 per ounce by the ‍end of 2026, contingent ⁣on sustained demand and ongoing economic uncertainty.

A⁣ recent market analysis by Bloomberg (January 20,​ 2026) suggests that the current gold rally is unlikely‌ to abate ‍quickly, citing strong ​investor sentiment and limited supply.

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