Gold and silver prices hit record highs as markets reacted to Trump’s threat of tariffs on European countries for buying Greenland. Gold jumped 2% to $4,688 per ounce, while silver spiked 4% to $94.02 before easing. This surge reflects rapid repricing of geopolitical and policy risks, not physical supply changes.

Institutional and policy risks are driving markets toward safe-haven assets like gold, says market analyst Linh Tran. Gold is being strategically revaluated in global portfolios as confidence in fiat currencies is tested. Trump warned of tariffs on European imports if a deal on Greenland is not reached by February 1, escalating tensions.

The European Union warned of activating €93 billion in counter tariffs by February 7 if the U.S. imposes measures. The U.K. is not currently considering retaliatory tariffs. Gold rally is also influenced by Trump’s confrontation with the Federal Reserve and concerns over central bank independence, dollar volatility, and policy-driven inflation shocks.

Gold performs strongly during geopolitical stress, policy uncertainty, and low real interest rates. Prices surged 64% last year and are up 8% this year as investors reassess global market risks. Silver has gained 147% in 2025 and more than 30% this year, reflecting its role as a safe-haven asset and its importance in industrial and clean-energy applications.

Read more at Yahoo Finance: Gold, Silver Hit Record Highs as Trump Threats Over Greenland Rattle Markets