Gold, silver hit record highs as Greenland tariff threat sparks safety rush
By Axel Miller | 19 Jan 2026
Gold and silver surged to fresh record highs on Monday as investors rushed into safe-haven assets after U.S. President Donald Trump threatened sweeping new tariffs on European countries over a dispute linked to Greenland, escalating trade and geopolitical tensions.
Spot gold climbed 1.6% to $4,666.65 an ounce, after touching an all-time high of $4,689.39 earlier in the session. U.S. gold futures for February delivery rose 1.7% to $4,671.40.
Silver outperformed, jumping 4% to $93.50 an ounce and briefly hitting a record $94.08, as traders piled into precious metals amid fears of a broader transatlantic trade conflict.
Trump said over the weekend that the United States would roll out a wave of escalating tariffs on European allies unless they agree to allow the U.S. to purchase Greenland, deepening a standoff with Denmark and the European Union. EU diplomats said the bloc is preparing retaliation measures should the duties go ahead.
“Geopolitical tensions have given gold bulls another powerful catalyst,” said Matt Simpson, senior analyst at StoneX. “With tariffs now part of the Greenland dispute, the risk of a deeper political and trade rupture in Europe has become very real.”
The tariff threat rattled global markets, pressuring stock futures and the dollar while boosting demand for traditional safe havens such as gold, the Japanese yen and the Swiss franc.
Analysts said silver’s rally is being driven by a mix of safe-haven demand and strong industrial consumption, particularly from clean energy and electronics. Christopher Wong, strategist at OCBC, said the medium-term outlook remains constructive due to supply tightness and resilient industrial demand, but cautioned that the sharp pace of gains could trigger short-term volatility.
Meanwhile, J.P. Morgan said it continues to prefer gold over silver, arguing that while silver could see a sharper correction, gold remains supported by central bank demand, geopolitical risk and expectations of easier global monetary policy.
Summary
Gold and silver hit record highs as investors rushed into safe havens after President Trump threatened escalating tariffs on Europe over a Greenland-linked dispute, fueling fears of a deeper geopolitical and trade rupture.
FAQs
Q1: Why are gold and silver hitting record highs?
Prices surged as investors moved into safe-haven assets after President Trump threatened new tariffs on European countries linked to a Greenland dispute, raising fears of broader geopolitical and trade escalation.
Q2: What did Trump say about Greenland?
Trump warned the U.S. could impose escalating tariffs on European allies unless they agree to allow the U.S. to purchase Greenland, intensifying tensions with Denmark and the European Union.
Q3: How are markets reacting to the tariff threat?
The dollar weakened and risk sentiment turned cautious, while safe-haven assets such as gold, the yen and the Swiss franc strengthened.
Q4: Why is silver outperforming gold?
Silver is benefiting from both safe-haven flows and industrial demand (including electronics and clean-energy applications), amplifying gains during risk-off moves.
Q5: What is J.P. Morgan’s outlook on gold vs silver?
J.P. Morgan continues to prefer gold, citing stronger structural support such as central bank demand and geopolitical uncertainty, while warning silver’s sharp rally can be more volatile.
Q6: What could this mean for investors?
Persistently high precious-metal prices reflect elevated uncertainty around global trade and geopolitics, reinforcing gold’s role as a portfolio hedge.