Spot gold climbed sharply to a fresh all-time high of $4,689.39, extending its rally as investors sought protection from political risk and currency volatility, amid U.S. President Donald Trump’s new tariff threats on Europe over Greenland. Silver price followed suit, soaring to a record $94.08 per ounce. At the latest check, gold was trading at $4,661.27 per ounce, up $70.98, or 1.55%, in U.S. dollars (USD). Silver strengthened 4.84% to $93.20 per ounce, adding $4.30.
Trump Tariff Threats Target Europe Over Greenland
President Donald Trump reignited trade and geopolitical tensions by threatening sweeping new tariffs tied to his renewed push to acquire Greenland. The U.S. president said on Saturday that Washington will roll out fresh trade duties on eight European countries, including Denmark, Sweden, Norway, Finland, Great Britain, France, Germany, and the Netherlands, beginning February 1. The levies, initially set at 10%, would be increased to 25% from June 1 and would remain in force until the United States secures an agreement to acquire the semi-autonomous Danish territory. The remarks rattled investors, driving intense safe-haven demand for precious metals amid fears of a widening transatlantic trade conflict.
Greenland, an autonomous territory under the sovereignty of Denmark, has once again become a geopolitical flashpoint. Trump argued that control of Greenland is vital for U.S. defense strategy, citing Arctic shipping lanes, rare earth resources, and competition from China and Russia.
“NATO has been telling Denmark, for 20 years, that ‘you have to get the Russian threat away from Greenland. Unfortunately, Denmark has been unable to do anything about it. Now it is time, and it will be done!!! Trump wrote in his latest post on Truth Social.
He also linked the proposal to his vision for the “Golden Dome” missile defense system, claiming that Greenland’s location is strategically indispensable.
Europe Pushes Back as Trade and NATO Tensions Rise
European leaders reacted swiftly. Denmark firmly rejected any discussion of selling Greenland, calling the idea a violation of international norms. The European Union (EU) warned that it is prepared to activate its “anti-coercion” instruments if the U.S. proceeds with punitive tariffs, escalating fears of a broader trade war. French President Emmanuel Macron emerged as a leading voice urging a coordinated European response, emphasizing that economic pressure would not alter European sovereignty.
“Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld.” French President Emmanuel Macron wrote on X yesterday, January 18.
Italy’s prime minister said on Sunday, January 18, 2026, that U.S. President Donald Trump’s threat to impose tariffs on opponents of his plan to take control of Greenland would be a “mistake,” adding that she had conveyed her concerns directly to him.
The dispute has also strained transatlantic relations within NATO, where unity has already been tested by disagreements over defense spending and security priorities. Analysts note that rising tensions involving Greenland could complicate Arctic cooperation at a time when China and Russia are expanding their presence in the region.
Meanwhile, legal uncertainty added another layer of market anxiety. The U.S. Supreme Court is reviewing the legality of Trump’s potential use of emergency powers to impose the new tariffs, raising questions about how far executive authority can extend in trade matters. Investors fear that prolonged legal and political battles could further destabilize markets.
Against this backdrop, demand for traditional stores of value has intensified. Analysts say safe-haven demand is the dominant force behind the rally in gold (XAU) and silver (XAG), outweighing concerns about high prices and potential profit-taking. Central bank buying, inflation hedging, and geopolitical risk have combined to create a powerful tailwind for precious metals.
With Donald Trump, Greenland, and tariffs now firmly at the center of global attention, market participants remain on edge. As negotiations between the U.S., Denmark, and the European Union (EU) unfold, investors are bracing for continued volatility, conditions that could keep gold and silver near record highs in the weeks ahead.
