Gold, Silver Hit Record Highs as Trump Threats Over Greenland Rattle Markets

Market Reaction - Gold and silver prices surged to all-time highs due to U.S. President Donald Trump's tariff threats against European countries, prompting a shift towards safe-haven assets [1][2] - Gold reached a record price of $4,688 per ounce, with a 2% increase, while silver spiked 4% to $94.02 per ounce before settling around $93 [2] Geopolitical and Policy Risks - The rally in precious metals reflects a rapid repricing of geopolitical and policy risks rather than changes in physical supply [2] - Institutional and policy risks are driving markets towards safe-haven assets, with gold being favored as confidence in fiat currencies wanes [3] Tariff Implications - Trump announced a 10% tariff on imports from several European countries, which could rise to 25% if no agreement on Greenland is reached [4] - The European Union warned of a potential €93 billion ($108.2 billion) counter-tariff package that could be activated if U.S. tariffs proceed [5] Market Trends - The precious metals rally is compounded by existing pressures in currency and gold markets due to Trump's confrontations with the Federal Reserve [6] - Gold typically performs well during geopolitical stress, policy uncertainty, and low real interest rates, having surged 64% last year and up about 8% this year [7] Silver Market Dynamics - Silver has seen a more aggressive rally, gaining 147% in 2025 and over 30% this year, driven by its role as a safe-haven asset and its importance in industrial applications [8]