Gold and silver hit all-time highs after United States President Donald Trump threatened to impose tariffs on European countries as pressure for a deal so the U.S. can purchase Greenland.
The yellow metal jumped 2% to $4,688 per oz. on Sunday and sat at $4,664 Monday morning, while silver soared 4% to $94.02 per oz., before settling to $93 per ounce.
When institutional and policy risks rise, markets tend to quickly react by moving toward safe-haven assets, with gold once again coming out as the top choice, Linh Tran, a senior market analyst with XS.com, said in a note.
“Gold is no longer merely reacting to tariff headlines or Fed-related developments, but is entering a phase of strategic revaluation within global portfolios,” Tran said. “As risks stemming from unpredictable policy actions intensify and confidence in fiat currencies is increasingly tested, gold is gradually transitioning from a defensive hedge into a core asset within risk management strategies.”
10% tariffs
Those increases came a day after Trump said he would set 10% tariffs on the U.K., Denmark, Norway, Sweden, France, Germany, Holland and Finland by Feb. 1 if a deal can’t be reached to buy the semiautonomous Danish territory. The levies would rise to 25% in June, Trump added.
The European Union has said that a €93-billion ($108.2-billion) package of counter tariffs it had agreed on last year could take effect on Feb. 7 if Trump’s threatened tariffs go through. The U.K. isn’t considering its own retaliatory tariffs, Prime Minister Keir Starmer said Monday.
Geopolitical stress
Gold generally does well during geopolitical and economic turmoil and in low-interest-rate environments. Its spike on Sunday came after gold’s 64% rise last year, and it has already gained 8% since the start of this year.
Silver rose even more in 2025, clocking a 147% gain over the year, and has surged more than 30% so far this year.
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