Gold and Silver Surge to Record Highs Amid Trump's Tariff Threats Over Greenland
Gold and silver reached record highs on Monday with gold climbing 1.6% to $4,670.01 per ounce and silver advancing 4.4% to $93.85 per ounce. The surge followed Trump's threats to impose additional tariffs on European allies over Greenland control, prompting investors to seek safe-haven assets. EU ambassadors agreed to intensify efforts to dissuade the tariffs while preparing retaliatory measures, as broader markets showed risk-averse behavior with declining U.S. stock futures and dollar.

*this image is generated using AI for illustrative purposes only.
Gold and silver prices surged to record highs on Monday as investors flocked to safe-haven assets amid escalating geopolitical tensions. The precious metals rally was triggered by Trump's threats to impose additional tariffs on European countries over the control of Greenland, creating widespread market uncertainty.
Precious Metals Performance
Both gold and silver achieved remarkable gains during Monday's trading session, with investors seeking refuge in traditional safe-haven assets.
| Metal | Current Price | Change (%) | Record High |
|---|---|---|---|
| Spot Gold | $4,670.01/oz | +1.6% | $4,689.39/oz |
| U.S. Gold Futures (Feb) | $4,677.00/oz | +1.8% | - |
| Spot Silver | $93.85/oz | +4.4% | $94.08/oz |
| Spot Platinum | $2,373.08/oz | +1.9% | - |
| Palladium | $1,809.00/oz | +0.5% | - |
Geopolitical Tensions Drive Market Movement
Trump escalated tensions on Saturday by vowing to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland. This threat has intensified the ongoing dispute over the future of Denmark's vast Arctic island, creating significant market volatility.
European Union ambassadors responded on Sunday by reaching a broad agreement to intensify efforts to dissuade Trump from imposing tariffs on European allies. Simultaneously, EU diplomats confirmed they are preparing retaliatory measures should the duties proceed as threatened.
Broader Market Impact
The tariff threats created a risk-averse environment across global markets. U.S. stock futures and the dollar declined as Trump's latest statements increased investors' appetite for safe-haven assets including gold, yen, and Swiss franc. This broad market movement reflects growing concerns about potential trade disruptions and economic uncertainty.
Economic Factors Supporting Gold
Federal Reserve Vice Chair for Supervision Michelle Bowman indicated on Friday that a fragile job market could weaken quickly, suggesting the U.S. central bank should stand ready to cut interest rates again if needed. Non-yielding gold typically thrives in low interest rate environments and during periods of economic uncertainty.
China's economic growth likely slowed to a three-year low in the fourth quarter as domestic demand softened. While the full-year pace is set to hit close to Beijing's target, trade tensions and structural imbalances pose significant risks to the economic outlook.
Market Indicators and Demand
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reported its holdings rose 1.01% to 1,085.67 metric tons on Friday. However, gold demand in India remained muted last week as prices hit record highs again, reducing retail buying interest. China's demand stayed steady ahead of the Lunar New Year celebrations.















































