Gold and Silver Jump to Record Highs on Greenland Tariff Threats

Group 1 - Gold and silver prices reached record highs due to fears of a trade war between the US and Europe, with spot gold rising 2.1% to nearly $4,700 an ounce and silver surging 4.4% [1] - The US plans to impose tariffs of 10% on eight European nations starting February 1, increasing to 25% by June, which has prompted discussions among European leaders about retaliatory measures on $108 billion of US goods [2] - German Finance Minister Lars Klingbeil emphasized the need for Europe to respond firmly to ongoing provocations from President Trump, indicating that the limit has been reached [3] Group 2 - French President Emmanuel Macron may activate the EU's anti-coercion instrument, which is the bloc's most powerful tool for retaliation against coercive trade measures [4] - Analysts have compared the US's tariff threats to a mafia extortion racket, suggesting that the impact on precious metals reflects a shift away from US dollar assets and concerns over inflation due to a potential trade war [5] - The tensions surrounding Greenland are seen as indicative of deeper geopolitical issues, with tariff threats creating a "trust shock" within NATO, leading to a more persistent risk premium [6]