Gold, silver hit record highs as Trump's Greenland tariffs spark safety rally

Gold and silver prices climbed to fresh peaks on Monday, as investors poured into safe-haven assets after U.S. President Donald Trump threatened to impose extra tariffs on European countries over the control of Greenland.

Spot gold jumped 1.6% to $4,666.65 per ounce by 0739 GMT, after scaling an all-time high of $4,689.39.

U.S. gold futures for February delivery advanced 1.7% to $4,671.40 per ounce.

On Saturday, Trump vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark's vast Arctic island.

European Union ambassadors are preparing retaliatory measures should the duties go ahead, EU diplomats said.

"Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs," StoneX senior analyst Matt Simpson said.

"With Trump throwing tariffs into the mix, it is clear that his threat to Greenland is real, and that we could be one step closer to the end of NATO and political imbalances within Europe."

U.S. stock futures and dollar slid as Trump's latest tariff threats raised investors' appetite for safe-haven gold, yen and Swiss franc, in a broad risk-averse move across markets.

Spot silver climbed 4% to $93.50, after hitting a record high of $94.08.

"On silver, the medium-term narrative remains constructive, supported by persistent physical deficits, resilient industrial demand and safe-haven demand," said Christopher Wong, a strategist at OCBC.

"But the pace of the recent extension may warrant some near-term tactical caution," Wong said, noting that the gold-silver ratio declined sharply from highs near 105 in late 2025 to low-50s, signalling silver's outsized performance versus gold.

J.P. Morgan analysts said that they have a stronger preference for gold relative to silver as any disruptive correction in silver could have some near-term contagion into gold but still presents a buying opportunity in gold which continues to have a cleaner, bullish structural story.

In other precious metals, spot platinum added 1.1% to $2,353.25 per ounce, while palladium rose 0.2% to $1,804.06.