Gold and Silver Prices Surge Amid US Tariff Threats Over Greenland
Published 18 January 2026
Highlights
- Gold and silver prices have reached record highs amid US President Trump's tariff threats against eight European countries over Greenland.
- Trump announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, potentially rising to 25%.
- European markets are expected to fall, with the FTSE 100 index predicted to drop by 0.9% and the Dow Jones by 0.5%.
- The EU is considering a €93bn package of retaliatory tariffs on US imports in response to Trump's actions.
- Analysts highlight increased demand for safe haven assets like gold due to rising geopolitical tensions.
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Rewritten Article
Gold and Silver Prices Surge Amid US Tariff Threats Over Greenland
The prices of gold and silver have soared to unprecedented levels following US President Donald Trump's announcement of new tariffs targeting eight European countries. This move is part of Trump's controversial strategy to acquire Greenland, an autonomous Danish territory. Gold prices reached a record $4,689.39 per ounce, while silver peaked at $94.08 per ounce, as investors flocked to these safe haven assets amid escalating geopolitical tensions.
Tariff Escalation and Market Reactions
On Saturday, President Trump declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, effective from February 1. The tariffs could increase to 25% by June 1 if no agreement on Greenland is reached. This announcement has sent shockwaves through global markets, with European stock exchanges bracing for significant losses. London's FTSE 100 index is projected to fall by 0.9%, while the Dow Jones is expected to drop by 0.5% when Wall Street reopens.
EU's Potential Retaliatory Measures
In response to Trump's aggressive tariff strategy, the European Union is reportedly preparing a €93bn package of retaliatory tariffs on US imports. European leaders, including UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, have criticized Trump's actions, warning of potential disruptions to NATO alliances and existing trade agreements.
Analysts Weigh In on Safe Haven Demand
The geopolitical uncertainty has driven investors towards gold and silver, traditionally viewed as safe haven assets. "Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs," commented Matt Simpson, a senior analyst at StoneX. The dollar has also weakened against currencies like the Swiss franc and Japanese yen, further highlighting market volatility.
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Scenario Analysis
The unfolding situation could lead to significant economic and political repercussions. If the US proceeds with its tariff plan, European countries may retaliate, potentially sparking a trade war that could destabilize global markets. This scenario could further drive up the demand for safe haven assets like gold and silver, impacting currency valuations and international trade dynamics.
Experts warn that Trump's actions might strain US-European relations, particularly within NATO, as European leaders seek to protect their economic interests. The EU's potential retaliatory measures could escalate tensions, prompting further negotiations or legal challenges. As the situation develops, investors and policymakers will closely monitor the geopolitical landscape for any signs of resolution or further escalation.
The prices of gold and silver have soared to unprecedented levels following US President Donald Trump's announcement of new tariffs targeting eight European countries. This move is part of Trump's controversial strategy to acquire Greenland, an autonomous Danish territory. Gold prices reached a record $4,689.39 per ounce, while silver peaked at $94.08 per ounce, as investors flocked to these safe haven assets amid escalating geopolitical tensions.
Tariff Escalation and Market Reactions
On Saturday, President Trump declared a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, effective from February 1. The tariffs could increase to 25% by June 1 if no agreement on Greenland is reached. This announcement has sent shockwaves through global markets, with European stock exchanges bracing for significant losses. London's FTSE 100 index is projected to fall by 0.9%, while the Dow Jones is expected to drop by 0.5% when Wall Street reopens.
EU's Potential Retaliatory Measures
In response to Trump's aggressive tariff strategy, the European Union is reportedly preparing a €93bn package of retaliatory tariffs on US imports. European leaders, including UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen, have criticized Trump's actions, warning of potential disruptions to NATO alliances and existing trade agreements.
Analysts Weigh In on Safe Haven Demand
The geopolitical uncertainty has driven investors towards gold and silver, traditionally viewed as safe haven assets. "Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs," commented Matt Simpson, a senior analyst at StoneX. The dollar has also weakened against currencies like the Swiss franc and Japanese yen, further highlighting market volatility.
What this might mean
The unfolding situation could lead to significant economic and political repercussions. If the US proceeds with its tariff plan, European countries may retaliate, potentially sparking a trade war that could destabilize global markets. This scenario could further drive up the demand for safe haven assets like gold and silver, impacting currency valuations and international trade dynamics.
Experts warn that Trump's actions might strain US-European relations, particularly within NATO, as European leaders seek to protect their economic interests. The EU's potential retaliatory measures could escalate tensions, prompting further negotiations or legal challenges. As the situation develops, investors and policymakers will closely monitor the geopolitical landscape for any signs of resolution or further escalation.
