Trump’s Greenland Tariff Threats Send Gold and Silver to Record Highs

TLDR

• Gold hit a record high near $4,670 per ounce and silver reached $94 as President Trump threatened tariffs on eight European nations over Greenland acquisition plans
• Trump announced 10% tariffs starting February 1 on countries including France, Germany, and UK, rising to 25% in June if no agreement is reached
• European Union officials are planning emergency meetings to discuss counter-measures including potential retaliatory tariffs on $108 billion of US goods
• Gold ETF holdings increased by 28 tons last week, the biggest jump since September, with Citigroup forecasting gold could reach $5,000 per ounce within three months
• The dollar weakened as investors moved into safe-haven assets amid concerns about trade wars and Federal Reserve independence

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Gold and silver prices jumped to all-time highs on Monday as tensions escalated between the United States and Europe. The surge came after President Donald Trump announced new tariff plans tied to his push to acquire Greenland.

Spot gold climbed 1.6% to reach $4,670.47 per ounce during Asian trading hours. The precious metal touched a peak of $4,690.59 earlier in the session. Silver prices performed even better, jumping 3.4% to $93.18 per ounce and hitting a record high of $94.12.

Micro Gold Futures,Feb-2026 (MGC=F)

The price increases followed Trump’s weekend announcement of tariff plans targeting eight European countries. The affected nations include France, Germany, and the United Kingdom, along with several Nordic and northern European states. These countries have publicly opposed Trump’s plans for the US to acquire Greenland from Denmark.

The tariffs will start at 10% on February 1. Trump stated the rate would increase to 25% in June if no agreement is reached. The announcement drew immediate criticism from European officials and raised fears of a broader trade conflict.

European Response Takes Shape

European Union leaders are now planning emergency meetings to discuss their response. Member states are exploring several counter-measures to Trump’s tariff threats. Sources familiar with the discussions said officials are considering retaliatory levies on approximately $108 billion worth of US goods.

French President Emmanuel Macron may request activation of the EU’s anti-coercion instrument. This tool represents the bloc’s most powerful retaliation mechanism. The ACI allows the EU to deploy various steps in response to coercive trade measures from other nations.

The Bloomberg Dollar Spot Index fell 0.2% as investors moved away from the currency. Demand for safe-haven assets like gold and silver increased as concerns grew about US foreign policy and potential trade wars.

Investor Demand Continues to Grow

Gold exchange-traded funds saw their holdings jump by 28 tons last week. This represented a 0.9% increase and marked the biggest gain since September. ETF holdings have expanded in seven of the last eight weeks.

Analysts expect the rally in precious metals to continue. Citigroup forecasted last week that gold would reach $5,000 per ounce within three months. The bank also predicted silver would hit $100 per ounce.

Beyond the Greenland dispute, gold has benefited from expectations of Federal Reserve rate cuts later this year. Softer US economic data and signs of cooling inflation have strengthened the case for lower interest rates. This reduces the opportunity cost of holding non-yielding assets like gold.

Platinum prices also rose more than 1% to $2,358.69 per ounce on Monday. Copper futures on the London Metal Exchange gained 0.6% to $12,881.0 per ton. The copper increase came after China’s GDP data showed the country met its 5% growth target for 2025.

Investors will watch the US Supreme Court on Wednesday as it hears arguments about Trump’s effort to fire Fed governor Lisa Cook. The case could have implications for the central bank’s independence. Concerns about Fed independence have already contributed to increased investment in precious metals as a hedge against currency debasement.

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