- Gold and silver hit record highs amid fears of a US-Europe trade war over Greenland tariffs
- Trump plans 10% tariffs from Feb 1, rising to 25% in June on eight European countries
- EU leaders to hold emergency talks on retaliatory tariffs worth €93 billion on US goods
Gold and silver jumped to record highs as President Donald Trump's intensifying push to take Greenland spurred fears of a damaging trade war between the US and Europe.
Trump said he would slap tariffs on eight European nations — including France, Germany and the UK — that have opposed his plan to acquire Greenland. The 10% levy will kick in on Feb. 1 and rise to 25% in June. The move supported haven demand for precious metals.
European leaders will hold an emergency meeting in the coming days as they explore possible counter-measures. Member states are discussing several options for how to respond, including imposing retaliatory levies on €93 billion ($108 billion) of US goods, according to people familiar with the talks.
French President Emmanuel Macron may request the activation of the European Union's anti-coercion instrument, Bloomberg reported. The ACI is the bloc's most powerful retaliation tool, and allows the EU to deploy an array of steps in response to coercive trade measures.
“Geopolitical risks keep heating up,” said Kyle Rodda, an analyst at Capital.com in Melbourne. “Fresh trade uncertainty undermines growth prospects and US foreign policy is eroding trust in the US dollar. It's a perfect mix for gold and silver.”
Precious metals have rallied sharply this year, following dramatic gains in 2025, as the US seized Venezuela's leader and then doubled down on threats to take Greenland. The Trump administration has also renewed attacks on the Federal Reserve, intensifying worries over the central bank's independence and fueling the debasement trade, where investors avoid currencies and government bonds on concerns over debt levels.
Spot gold climbed 1.6% to $4,668.76 an ounce as of 8:11 a.m. in Singapore, hitting a peak of $4,690.59 earlier. Silver surged 3.2% to $93.0211, and touched a high of $94.1213. Platinum and palladium were also up. The Bloomberg Dollar Spot Index dipped 0.1%.
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