Gold and silver prices soared to unprecedented levels on Monday, driven by market anxiety after former U.S. President Donald Trump threatened to impose sweeping tariffs on several key European nations. The announcement has reignited fears of a transatlantic trade war and sent investors scrambling toward traditional safe-haven assets.
Spot gold surged to a record $4,689.39 per ounce, while silver climbed sharply to $94.08 per ounce. The rally in precious metals coincided with a broad sell-off in global stock markets, as investors weighed the economic implications of the proposed tariffs.
Tariff Threat Targets Greenland Opponents
The measures specifically target imports from eight European countries—the United Kingdom, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland—all of which had opposed Trump’s long-stated ambition to purchase Greenland. In a lengthy statement, Trump framed the tariffs as corrective action, claiming the U.S. had “subsidised Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration.”
“Now, after Centuries, it is time for Denmark to give back,” he declared, adding, “World Peace is at stake!”
According to a post by Trump on his Truth Social platform, the tariffs are scheduled to take effect on February 1 at an initial rate of 10%, before escalating sharply to 25% on June 1.
Investors Seek Safety as Trade Tensions Flare
Market analysts directly linked the spike in gold and silver to the geopolitical uncertainty. “Whenever geopolitical or trade tensions escalate, investors naturally flock to hard assets like gold and silver,” said commodity strategist Evelyn Reed. “The threat of a retaliatory trade war with Europe has created a perfect storm for precious metals.”
The dispute over Greenland appears to be the immediate catalyst, reviving concerns from Trump’s previous term about the stability of international alliances and free trade. This latest development has amplified existing market unease stemming from persistent inflation, elevated global debt levels, and ongoing conflicts.
EU Prepares Retaliatory Measures
In response to the threat, European Union officials confirmed they are actively preparing a substantial countermeasure a €93 billion (£80 billion) package of tariffs on U.S. imports. Such a move would risk a significant escalation, potentially mirroring the tit-for-tat trade disputes that marked Trump’s first presidency.
Long-Term Bullish Trend for Precious Metals
The current surge extends a major bull run for gold, which saw prices rise over 60% last year alone. That increase was fueled by a combination of central bank buying, concerns over economic slowdown, and pre-existing geopolitical risks. Silver, often more volatile than gold, is benefiting from both its safe-haven status and its heavy industrial demand in the green energy sector.
Financial experts caution that the volatility is likely to persist. “The markets are now pricing in a new era of trade uncertainty,” noted chief economist Marcus Thorne. “Until there is clarity on the implementation and response to these tariffs, gold and silver will remain highly sensitive to any headlines out of Washington or Brussels.”
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