Trump's attempt to buy islands has drawn global criticism and may reshape the logic of gold as a safe-haven asset.
2026-01-16 17:30:09
In a direct response to US President Donald Trump’s public declaration of his ambition to control Greenland, Danish and Greenlandic officials are intensifying diplomatic efforts with US lawmakers to build a legislative barrier against any possible action by the White House.
High-level meetings are taking place on both sides of the Atlantic. A delegation of U.S. senators is scheduled to meet with members of the Danish Parliament in Copenhagen later this Friday (January 16). This follows Danish Foreign Minister Lars Løkke Rasmussen and Greenlandic Foreign Minister Vivian Mozfeldt's multiple meetings in Washington with Vice President JD Vance, Secretary of State Marco Rubio, and key members of Congress.
Copenhagen and Nuke's core strategy was to secure strong support on Capitol Hill. By appealing to lawmakers who control federal spending, they aimed to limit the White House's ability to act on Arctic territorial issues.
Recent talks between the United States, Denmark, and Greenland have stalled over the island's future. Although all parties agreed to establish a working group to address the dispute, President Trump insisted that the United States must maintain control of the island, a position opposed by both Danish and Greenlandic authorities.
A bipartisan action is taking shape in the U.S. Senate aimed at countering the president's agenda. Republican Senator Lisa Murkowski from Alaska, with extensive experience in Arctic affairs, has become a leading congressional critic of Trump's Greenland ambitions.
This week, Murkowski and New Hampshire Democratic Senator Jeanne Shaheen jointly introduced a bill aimed at prohibiting the use of U.S. government funds to occupy or annex NATO territory without the consent of NATO allies.
“We are in an era where we are discussing things we once thought impossible,” Murkowski told reporters after meeting with the foreign ministers of Denmark and Greenland in Washington. “It is important to convey the message that Congress recognizes and supports the sovereignty of the Greenlandic people and that we respect them as a nation.”
Although President Trump can veto the legislation, Congress still has the power to impose spending restrictions on annual government funding programs.
When asked if the bill was merely symbolic, Xia Xin emphasized its practical importance. She said, "It's important to express bipartisan support for NATO and relations with Denmark and Greenland, and this legislation does just that."
As diplomatic maneuvering unfolds in Washington, European nations are demonstrating their support on the ground. A detachment of 13 German military personnel is scheduled to arrive in Greenland on Friday, joined by personnel from France, Britain, Sweden, Norway, Finland, and the Netherlands.
According to Danish sources, these troops are preparing for a military exercise aimed at becoming a permanent mechanism. The rapid deployment underscores the urgency felt by European allies in responding to what they perceive as a US threat over Greenland.
The semi-autonomous territory is part of the Kingdom of Denmark and is therefore protected under Article 5 of NATO's collective defense clause. European Commission spokeswoman Anita Schipper also noted on Thursday that the territory is "in principle protected under Article 42.7 of the Treaty on European Union, the mutual solidarity clause."
Although most Republican lawmakers are reluctant to directly challenge President Trump, the party's establishment, particularly in the Senate, has made it clear that it supports the transatlantic alliance.
Former Senate Majority Leader Mitch McConnell issued a stern warning to Trump on Wednesday while speaking in the Senate. He cautioned the president that attempting to seize Greenland from NATO allies would be tantamount to "burning the hard-won trust with loyal allies."
McConnell stated, "This isn't just about Greenland. It's not just about the relationship between the United States and its capable Nordic allies. It's about whether the United States intends to confront a range of strategic adversaries with capable allies... or choose to engage in unprecedented strategic self-harm and fight alone."
The bipartisan congressional delegation to Copenhagen included: Senator Chris Coons (D-DE); Senator Lisa Murkowski (R-AK); Senator Jeanne Shaheen (D-NH); Senator Tom Tillis (R-NC); Senator Dick Durbin (D-IL); Representative Gregory Meeks (D-NY); Representative Madeline Dean (Democrat, Pennsylvania); Representative Sarah Jacobs (Democrat, California); and Representative Sarah McBride (Democrat, Delaware).
In a renewed diplomatic offensive, Danish Foreign Minister Rasmussen hosted a dinner for nearly 40 members of the House of Representatives at the embassy on Wednesday. Rasmussen stated, "The legislators I've spoken with all recognize that the Kingdom of Denmark and the United States are close allies, and our relationship has lasted for 225 years without interruption. No other ally of the United States has such a long and continuous cooperative relationship, and we should continue to build on this foundation."
At the heart of the issue is the ownership of Greenland, which has sparked rare and open tensions between the United States and its traditional NATO allies. This high-level geopolitical uncertainty, particularly concerning the United States, NATO, and strategically important Arctic locations, is a fundamental positive factor for traditional safe-haven assets like gold.
On Friday during the European session, spot gold fluctuated downwards, falling by about 0.27% on the day, due to a slight technical pullback caused by the recent strong upward movement. However, this does not change the overall bullish trend supported by fundamentals, and the gold price is currently not far from the all-time high of $4,642.77 reached on Wednesday.
The Greenland event is a potential source of risk that needs to be closely monitored. If there are subsequent signs of a substantial escalation of confrontation between the US and its allies, or an unusual increase in military activity in the Arctic region, its role as a catalyst for a market "black swan" event will increase, which may then trigger a more significant inflow of safe-haven funds into gold.
(Spot gold daily chart, source: FX678)
At 17:18 Beijing time, spot gold was trading at $4603.44 per ounce.
High-level meetings are taking place on both sides of the Atlantic. A delegation of U.S. senators is scheduled to meet with members of the Danish Parliament in Copenhagen later this Friday (January 16). This follows Danish Foreign Minister Lars Løkke Rasmussen and Greenlandic Foreign Minister Vivian Mozfeldt's multiple meetings in Washington with Vice President JD Vance, Secretary of State Marco Rubio, and key members of Congress.
Copenhagen and Nuke's core strategy was to secure strong support on Capitol Hill. By appealing to lawmakers who control federal spending, they aimed to limit the White House's ability to act on Arctic territorial issues.
Recent talks between the United States, Denmark, and Greenland have stalled over the island's future. Although all parties agreed to establish a working group to address the dispute, President Trump insisted that the United States must maintain control of the island, a position opposed by both Danish and Greenlandic authorities.
Legislative firewall on Capitol Hill
A bipartisan action is taking shape in the U.S. Senate aimed at countering the president's agenda. Republican Senator Lisa Murkowski from Alaska, with extensive experience in Arctic affairs, has become a leading congressional critic of Trump's Greenland ambitions.
This week, Murkowski and New Hampshire Democratic Senator Jeanne Shaheen jointly introduced a bill aimed at prohibiting the use of U.S. government funds to occupy or annex NATO territory without the consent of NATO allies.
“We are in an era where we are discussing things we once thought impossible,” Murkowski told reporters after meeting with the foreign ministers of Denmark and Greenland in Washington. “It is important to convey the message that Congress recognizes and supports the sovereignty of the Greenlandic people and that we respect them as a nation.”
Although President Trump can veto the legislation, Congress still has the power to impose spending restrictions on annual government funding programs.
When asked if the bill was merely symbolic, Xia Xin emphasized its practical importance. She said, "It's important to express bipartisan support for NATO and relations with Denmark and Greenland, and this legislation does just that."
European allies send military signal
As diplomatic maneuvering unfolds in Washington, European nations are demonstrating their support on the ground. A detachment of 13 German military personnel is scheduled to arrive in Greenland on Friday, joined by personnel from France, Britain, Sweden, Norway, Finland, and the Netherlands.
According to Danish sources, these troops are preparing for a military exercise aimed at becoming a permanent mechanism. The rapid deployment underscores the urgency felt by European allies in responding to what they perceive as a US threat over Greenland.
The semi-autonomous territory is part of the Kingdom of Denmark and is therefore protected under Article 5 of NATO's collective defense clause. European Commission spokeswoman Anita Schipper also noted on Thursday that the territory is "in principle protected under Article 42.7 of the Treaty on European Union, the mutual solidarity clause."
Cracks appear in the Republican camp
Although most Republican lawmakers are reluctant to directly challenge President Trump, the party's establishment, particularly in the Senate, has made it clear that it supports the transatlantic alliance.
Former Senate Majority Leader Mitch McConnell issued a stern warning to Trump on Wednesday while speaking in the Senate. He cautioned the president that attempting to seize Greenland from NATO allies would be tantamount to "burning the hard-won trust with loyal allies."
McConnell stated, "This isn't just about Greenland. It's not just about the relationship between the United States and its capable Nordic allies. It's about whether the United States intends to confront a range of strategic adversaries with capable allies... or choose to engage in unprecedented strategic self-harm and fight alone."
The bipartisan congressional delegation to Copenhagen included: Senator Chris Coons (D-DE); Senator Lisa Murkowski (R-AK); Senator Jeanne Shaheen (D-NH); Senator Tom Tillis (R-NC); Senator Dick Durbin (D-IL); Representative Gregory Meeks (D-NY); Representative Madeline Dean (Democrat, Pennsylvania); Representative Sarah Jacobs (Democrat, California); and Representative Sarah McBride (Democrat, Delaware).
In a renewed diplomatic offensive, Danish Foreign Minister Rasmussen hosted a dinner for nearly 40 members of the House of Representatives at the embassy on Wednesday. Rasmussen stated, "The legislators I've spoken with all recognize that the Kingdom of Denmark and the United States are close allies, and our relationship has lasted for 225 years without interruption. No other ally of the United States has such a long and continuous cooperative relationship, and we should continue to build on this foundation."
Potential drivers of gold
At the heart of the issue is the ownership of Greenland, which has sparked rare and open tensions between the United States and its traditional NATO allies. This high-level geopolitical uncertainty, particularly concerning the United States, NATO, and strategically important Arctic locations, is a fundamental positive factor for traditional safe-haven assets like gold.
On Friday during the European session, spot gold fluctuated downwards, falling by about 0.27% on the day, due to a slight technical pullback caused by the recent strong upward movement. However, this does not change the overall bullish trend supported by fundamentals, and the gold price is currently not far from the all-time high of $4,642.77 reached on Wednesday.
The Greenland event is a potential source of risk that needs to be closely monitored. If there are subsequent signs of a substantial escalation of confrontation between the US and its allies, or an unusual increase in military activity in the Arctic region, its role as a catalyst for a market "black swan" event will increase, which may then trigger a more significant inflow of safe-haven funds into gold.
(Spot gold daily chart, source: FX678)
At 17:18 Beijing time, spot gold was trading at $4603.44 per ounce.
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