Gold and Silver Trade Near Record Highs as Trump’s Greenland Threats Fuel Safe-Haven Demand
Gold and silver traded near record-high levels on Tuesday, as market sentiment weakened following renewed geopolitical tensions sparked by U.S. President Donald Trump’s threats to take control of Greenland, driving investors toward safe-haven assets.
Spot gold steadied at $4,671.54 per ounce by 01:18 GMT, after hitting an all-time high of $4,689.39 in the previous session.
U.S. gold futures for February delivery rose 1.8% to $4,676.80 per ounce.
Silver slipped 1.2% to $93.53 per ounce in spot trading, after earlier touching a record high of $94.72 during the session.
Trump has intensified efforts to assert sovereignty over Greenland from Denmark, a NATO member, prompting the European Union to consider potential countermeasures.
Meanwhile, the U.S. dollar fell to a one-week low on Tuesday, as White House threats toward the European Union regarding Greenland triggered broad sell-offs in U.S. equities and government bonds.
Investors continued to seek refuge in traditional safe-haven assets such as gold, the Japanese yen, and the Swiss franc, amid rising concerns over renewed trade-war volatility expected in 2025. Market participants fear instability similar to previous tariff disputes, which only eased after agreements were reached mid-year.
On Monday, the International Monetary Fund once again raised its global growth forecast for 2026, citing growing adaptation by companies and economies to U.S. tariffs.
China’s economy expanded 5.0% last year, meeting the government’s target by capturing a record share of global goods demand to offset weak domestic consumption. While this strategy helped cushion the impact of U.S. tariffs, analysts note it may become increasingly difficult to sustain.
Among other precious metals, platinum fell 0.6% to $2,359.45 per ounce, while palladium declined 1.3% to $1,817.44 per ounce.