Gold, silver hit record high after Trump's Greenland tariff threats
What's the story
Gold and silver prices have hit record highs amid fears of a US-Europe trade war over President Donald Trump's aggressive stance on Greenland. Spot gold rose by 1.6% to $4,668.76 an ounce in Singapore, hitting a peak of $4,690.59 earlier today. Silver also surged by 3.2% to $93.0211 after hitting a high of $94.1213 earlier today.
Tariff impact
Trump's tariff threats fuel demand for precious metals
Trump has threatened to impose tariffs on eight European nations—France, Germany, and the UK among them—that oppose his plan to acquire Greenland. The 10% levy will be effective from February 1 and increase to 25% in June. This move has boosted demand for precious metals as investors look for safe-haven assets amid rising geopolitical tensions.
Retaliation plans
European leaders consider counter-measures against US tariffs
In response to Trump's tariff threats, European leaders are considering counter-measures. They could impose retaliatory levies on $108 billion worth of US goods. French President Emmanuel Macron may even seek activation of the EU's anti-coercion instrument (ACI), its strongest retaliation tool allowing a range of responses to coercive trade measures.
Market response
Geopolitical risks and trade uncertainty boost precious metals
Kyle Rodda, an analyst at Capital.com in Melbourne, said the rising geopolitical risks and trade uncertainty are bad news for growth prospects. He added that these factors are eroding trust in the US dollar, creating a perfect environment for gold and silver. The Bloomberg Dollar Spot Index also dipped 0.1% amid these developments.
Market surge
Precious metals rally amid US's aggressive foreign policy
The precious metals market has seen a sharp rally this year, following significant gains in 2025. This comes after the US's aggressive foreign policy moves such as doubling down on threats to take Greenland. The Trump administration has also attacked the Federal Reserve, raising concerns over its independence and fueling fears of currency debasement due to high debt levels.