Gold Climbs to Record $4,690 and Silver Surges on Trump’s Greenland Tariff Threats

Gold and silver prices surged to record highs on Monday as escalating geopolitical tensions triggered by US President Donald Trump’s threat to impose tariffs over Greenland heightened fears of a transatlantic trade war, driving investors toward safe-haven assets.

Spot gold climbed 1.4% to $4,658.31 an ounce by mid-morning in Singapore, after touching an all-time high of $4,690.59 earlier in the session. Silver jumped as much as 4.4%, trading around $92.84 an ounce and briefly hitting $94.12. Platinum also advanced, while palladium edged lower. Meanwhile, the Bloomberg Dollar Spot Index slipped 0.1%, reflecting pressure on the US currency.

The rally follows Washington’s announcement that it will impose 10% tariffs on eight European countries, including France, Germany and the United Kingdom, from February 1, with duties set to rise to 25% by June. The measures target nations opposing the US plan to acquire Greenland, a move that has unsettled diplomatic relations within Europe and the NATO alliance.

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European leaders are expected to hold emergency talks in the coming days to discuss countermeasures. Options under consideration include retaliatory tariffs on up to €93 billion ($108 billion) worth of US goods, according to people familiar with the discussions. French President Emmanuel Macron may also seek activation of the European Union’s Anti-Coercion Instrument, the bloc’s strongest trade retaliation mechanism.

Market strategists say the latest tensions mark a deeper geopolitical rupture than last year’s tariff disputes. Analysts warn that using trade threats within long-standing alliances risks undermining trust in the US dollar, especially as the Trump administration has also renewed criticism of the Federal Reserve, raising concerns over central bank independence.

Precious metals have already enjoyed strong gains this year following a sharp rally in 2025, supported by rising geopolitical risks, investor demand from China, and inflows into exchange-traded funds. Gold ETF holdings rose 0.9% last week, the biggest increase since September, and have expanded in seven of the past eight weeks.

Several banks expect the momentum to continue. Citigroup has forecast that gold could reach $5,000 an ounce within three months, while silver may climb to $100. Analysts say the combination of trade uncertainty, geopolitical stress and waning confidence in the US dollar has created a powerful tailwind for gold and silver prices.