Gold and silver prices simultaneously hit historical peaks as President Donald Trump's push to take over Greenland raised concerns about a damaging trade war between the US and Europe.
Spot gold prices rose 2.1%, approaching $4,700/ounce, while silver jumped 4.4% as Trump's toughness put pressure on the USD and boosted demand for safe-haven assets. According to the plan, the US will impose tariffs on goods from eight European countries including France, Germany and the UK - countries that oppose the Greenland acquisition proposal.
The 10% tax rate will take effect from February 1st and increase to 25% in June. European leaders are considering many retaliation options, including the possibility of imposing retaliatory taxes on 93 billion Euros (equivalent to 108 billion USD) of US goods, according to sources familiar with the matter.
We constantly face new provocations, new confrontations that President Trump is seeking. And here, Europeans must make it clear that the limit has been crossed" - German Finance Minister Lars Klingbeil said in Berlin, alongside his French counterpart Roland Lescure.
French President Emmanuel Macron may propose activating the European Union's Anti-Coercion Mechanism (ACI) - the bloc's strongest response tool, allowing the EU to implement many measures to respond to trade-pressuring actions.
Precious metals have increased sharply this year, continuing the breakthrough momentum of 2025.
Capital flows to the metal group, led by Chinese investors, continued to strengthen the upward momentum of gold and silver. Gold holdings of ETF funds increased by more than 28 tons last week - the strongest increase since September and increased in 7/8 of the most recent weeks.
Many experts expect the incredible increase to continue. Citigroup last week forecast that gold could reach $5,000/ounce in three months, while silver could rise to $100/ounce.
Spot gold prices recorded an increase of 1.6% to 4,668.46 USD/ounce at 10:01 am in London, after hitting a peak of 4,690.59 USD/ounce. Silver increased by 3.3% to 93,0744 USD, once reaching 94,1213 USD. Platinum and palladium also simultaneously increased. Bloomberg Dollar Spot Index fell 0.2%.
Investors are closely following the debate at the US Supreme Court regarding Mr. Trump's efforts to fire US Federal Reserve (Fed) Governor Lisa Cook, the hearing is scheduled to take place on Wednesday and may be decisive for the independent future of the central bank.
