Gold and Silver surge to record highs as threat of Trump's trade war with EU over Greenland looms large

Fears of a severe trade war between the US and Europe were sparked by President Donald Trump’s increasing effort to seize Greenland, which caused gold and silver to soar to all-time highs.

Trump threatened to impose tariffs on eight European countries that have resisted his plan to purchase Greenland, including France, Germany, and the United Kingdom. Beginning on February 1, the 10% tax will increase to 25% by June. The action increased demand for precious metals.

In the next few days, European leaders will convene an urgent conference to discuss potential countermeasures. According to those familiar with the discussions, member states are debating a number of alternatives on how to react, including retaliatory taxes on $108 billion worth of US imports.
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Following significant gains in 2025 when the US detained Venezuela’s leader and subsequently intensified its threats to acquire Greenland, precious metals have seen a huge increase this year.

Additionally, the Trump administration has intensified attacks on the Federal Reserve, raising fears about the central bank’s independence and encouraging the debasement trade, in which investors steer clear of government assets and currencies due to worries about debt levels.

As of 8:11 a.m. in Singapore, spot gold has increased 1.6% to $4,668.76 per ounce, having previously peaked at $4,690.59. Silver reached a high of $94.1213 after rising 3.2% to $93.0211. Palladium and platinum were also rising.