Trump’s Greenland Tariff Threats Push Gold and Silver to Record Highs
Gold and silver reach all-time peaks after President Trump threatens European allies with escalating tariffs over Arctic annexation bid.
The global financial landscape shifted on Monday as investors abandoned traditional assets in favor of precious metals. Gold (XAUUSD) and Silver (XAGUSD) both powered to fresh record highs, driven by a wave of anxiety following President Donald Trump’s latest ultimatum regarding the acquisition of Greenland. This aggressive stance against long-standing European allies has fundamentally altered market sentiment, triggering a massive reallocation of capital into safe-haven assets.
Spot gold surged to a new high of $4,690.60 an ounce during Monday’s trading session. Gold last traded at $4,672.10, up 1.7% on the day. The yellow metal has now climbed nearly 70% over the past year, building on a 65% gain recorded in 2025. Silver’s performance proved even more explosive, soaring to a record $94.67. Silver last traded at $93.89, up 6.1% on the day. Over the past year, the gray metal has seen its value increase by 197.6%.
Also Read: Small Digital Health Stock Charts Bold Path to $250 Million Revenue by 2030
New Era of Geopolitical Friction
The catalyst for this latest rally stems from a weekend announcement where President Trump threatened to slap 10% tariffs on goods from eight European nations, including the U.K., France, and Germany. These levies, set to begin on February 1, aim to pressure these countries into facilitating a deal for the U.S. to purchase Greenland. If negotiations remain stalled by June, the administration plans to hike those duties to 25%.
European leaders have not stayed silent. Reports suggest the European Union is already preparing a €93 billion ($108.2 billion) package of retaliatory counter-tariffs. German Finance Minister Lars Klingbeil voiced the continent’s growing frustration during a press conference in Berlin.
Klingbeil stated:
“We are constantly experiencing new provocations, we are constantly experiencing new antagonism, which President Trump is seeking, and here we Europeans must make it clear that the limit has been reached.”
This deepening rift has directly impacted the U.S. Dollar Index (DXY), which softened as traders pivoted toward non-fiat assets. The combination of potential trade-war-induced inflation and a chilling effect on global economic activity has made the greenback less attractive compared to hard assets.
Institutional Revaluation and Market Shifts
Market analysts suggest this isn’t just a temporary price spike, but rather a structural shift in how global portfolios treat precious metals. Peter Mallin-Jones, an analyst at Peel Hunt LLP, described the administration’s tactics in stark terms. The tariff threats over Greenland are “reminiscent of a mafia extortion racket,” Mallin-Jones remarked. He added that the price action reflects a strategic move away from U.S. dollar-denominated assets.
The institutional appetite for these metals is clearly visible in the data. The gold holdings of major exchange-traded funds, such as the SPDR Gold Shares ETF (NYSE Arca: GLD), increased by over 28 tons last week alone. This marks the most significant weekly expansion since last September. Large-scale investors, particularly those in China, continue to rotate out of equities and into the metals complex as confidence in the traditional financial order wavers.
Investment banks see more room for growth despite the current record heights. Analysts at Citigroup (NYSE: C) recently updated their forecast, projecting that gold could reach the $5,000 milestone within three months. They also anticipate silver hitting the triple-digit mark of $100 an ounce in the same timeframe.
Pressure on the Federal Reserve
Adding fuel to the fire is the ongoing friction between the White House and the Federal Reserve. Markets remain on edge as the U.S. Supreme Court prepares to hear arguments regarding the President’s attempt to fire Fed Governor Lisa Cook. This perceived assault on central bank independence has raised fears that political pressure might eventually compromise the institution’s ability to curb inflation.
Linh Tran, a senior market analyst at XS.com, commented:
“When institutional and policy risks rise, markets tend to move quickly toward safe-haven assets, with gold once again coming out as the top choice.”
Tran noted that gold has entered a phase of strategic revaluation where it no longer just reacts to headlines, but serves as a hedge against the very stability of fiat currencies. With the Fed facing potential leadership upheaval and the job market showing signs of fragility, the argument for holding precious metals only grows stronger in the eyes of the professional trading community.
Small Cap News Movers & Winner Deep Dive – By WealthyVC.com
We scan over 10,000 publicly listed stocks across all seven North American exchanges to uncover the market-moving news that actually matters—focusing on high-quality, liquid, growth-oriented companies in sectors attracting serious capital, like AI, blockchain, biotech, and consumer tech.
Each week, we publish Small Cap News Movers, a curated roundup of small and micro-cap stocks surging on meaningful catalysts. We break down what’s driving the move, tap into rumors swirling on social media, and surface sharp insights from both industry experts and retail sleuths.
From this list, we select one standout stock for our Small Cap Winner Deep Dive, released the next day, where we take a closer look at the fundamentals, narrative, and technicals that suggest this winner could keep running.
Powered by our proprietary 4-element, AI-driven analysis system, our goal is simple: cut through the noise, remove the emotion, and help investors dominate the small-cap market with momentum-driven strategies—completely free.
Sign up for email alerts to get the moves before our social media followers.
Read Next: Why Nvidia’s Tech Investments Could Transform the Entire AI Innovation Ecosystem
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
