Gold and silver prices soared to unprecedented levels as President Donald Trump’s escalating push to acquire Greenland sparked fears of a damaging trade war between the United States and Europe.
Spot gold traded at $4,670 an ounce, while silver surged as much as 4.4%, with investors flocking to safe-haven assets as Trump’s stance weighed on the dollar.
This follows last week’s surge when silver jumped as much as 5.3% to top $90 an ounce for the first time, while gold surged past $4,630. Tin led the rally among base metals, climbing as much as 6%, while copper briefly touched an all-time high before easing.
The Trump administration announced plans to impose tariffs on eight European nations, including France, Germany, and the UK, that oppose the Greenland acquisition.
The 10% levies will take effect on February 1, rising to 25% in June.
European leaders are set to hold an emergency meeting in the coming days to discuss possible responses.
Member states are considering retaliatory tariffs on €93 billion ($108 billion) worth of US goods, according to people familiar with the talks.
French President Emmanuel Macron may request activation of the European Union’s anti-coercion instrument (ACI), described as the bloc’s most powerful retaliation tool.
The ACI allows the EU to deploy a range of measures against coercive trade actions.
Precious metals have rallied sharply this year, extending dramatic gains from 2025.
The surge follows the US seizure of Venezuela’s leader and renewed threats to take Greenland.
At the same time, Trump’s repeated attacks on the Federal Reserve have intensified concerns over the central bank’s independence, fueling the so-called “debasement trade”, where investors shun currencies and government bonds amid rising debt fears.
A broader rotation into metals, led by Chinese investors, has further boosted gold and silver.
Exchange-traded funds’ gold holdings rose by 28 tons (0.9%) last week, marking the largest increase since September. Holdings have expanded in seven of the past eight weeks.
Investors are closely watching the upcoming US Supreme Court hearing on Wednesday, where Trump’s effort to dismiss Federal Reserve Governor Lisa Cook will be argued.
The case could prove pivotal for the future of the Fed’s independence, adding another layer of uncertainty to global markets.
The case could prove pivotal for the future of the Fed’s independence, adding another layer of uncertainty to global markets.
What you should know
Last week, gold, silver, copper, and tin had surged to fresh records, extending a dramatic start to 2026.
Commodities have posted eye-watering gains since late 2025 as traders position themselves for a year in which the US Federal Reserve is expected to cut borrowing costs further to bolster growth.