The dollar index is down by -0.02% amid concerns over higher tariffs on European countries if they don’t allow Trump to acquire Greenland. US Dec pending home sales fell -9.3%, the biggest drop in 5.5 years. Trump is seeking “immediate negotiations” to acquire Greenland. Markets see a 5% chance of a -25 bp rate cut at the next FOMC meeting.

ECB President Lagarde states another round of tariffs from Trump would have a minor impact on inflation in Europe. Swaps price in a 0% chance of a +25 bp rate hike by the ECB next month. USD/JPY is up by +0.06% after Trump’s Greenland rhetoric eases. Markets see a 0% chance of a BOJ rate hike.

Gold prices are up +1.84% while silver is down -0.80%. Metals prices are supported by a weaker dollar and safe-haven buying amid US-Europe Greenland tensions. Gold reached a new contract high. Trump’s softened rhetoric led to reduced demand for precious metals. Central bank demand for gold remains strong.

Fund demand for precious metals is high, with long holdings in gold ETFs at a 3.25-year high. Long holdings in silver ETFs at a 3.5-year high. Gold prices are affected by geopolitical risks and the Fed’s monetary policy outlook. Central bank purchases of gold remain robust.

Read more at Yahoo Finance: Dollar Little Changed as President Trump Dials Back Harsh Rhetoric on Greenland