“Greenland” Tariffs Cause a Stir, Gold & Silver Break Records
Gold and silver prices surged to all-time highs after US President Donald Trump's maneuvers regarding Greenland sparked market fears of a new trade war between the US and Europe. When political tensions rise, investors typically rush to “safe” assets like precious metals.
On the spot market, gold briefly hovered around $4,660/oz, while silver surged by around 4%. The main driver came from risk-off sentiment: the dollar weakened, while demand for safe-haven assets surged rapidly.
The trigger: Trump announced 10% tariffs on eight European countries—including France, Germany, the UK (as well as Denmark, Sweden, the Netherlands, Finland, and Norway)—that objected to the US move regarding Greenland. These tariffs are scheduled to begin February 1st, potentially rising to 25% in June.
Europe is not standing idly by. European Union leaders are scheduled to hold emergency discussions and begin preparing retaliatory options, including the idea of retaliatory tariffs on approximately €93 billion of US goods. France even encouraged the EU to consider using the anti-coercion instrument (ACI)—the most powerful retaliatory tool available to counter trade pressure.
On the other hand, the precious metals rally is also supported by a broader narrative: investor concerns about the direction of US policy (including the issue of central bank independence) and the trend of diversification into the "metals complex." Gold ETF ownership data has also reportedly increased in recent weeks, indicating a return of strong capital flows to gold.
In the latest Asian session, spot gold rose around 1%+ to $4,658/oz and briefly reached a peak of around $4,690/oz, while silver hovered in the $92–$93/oz range and briefly touched $94/oz. The market's focus will now be on the continuation of the tariff drama, Europe's response, and the US policy agenda, which could further shake the dollar.
Source : Newsmaker.id
