Global financial markets witnessed dramatic shifts on Monday, with gold and silver prices to unprecedented record highs. This surge was fueled by a wave of risk aversion following US President Donald Trump's escalation of rhetoric toward European allies, threatening punitive tariffs amid the escalating geopolitical dispute over control of Greenland.
Historical figures for the yellow metal and silver
In an immediate response to the uncertainty, spot gold jumped 1.6% to $4,666.11 an ounce by 05:51 GMT, after hitting a session high of $4,689.39. This surge mirrored a 1.7% rise in US gold futures (February delivery) to settle at $4,671.90 an ounce.
Silver was not immune to this momentum, with the spot price recording a huge jump of 3.6% to reach $93.15 an ounce, after recording a record high of $94.08, reflecting heavy buying interest in precious metals.
Background to the conflict: Why Greenland?
The roots of this tension lie in the paramount strategic importance of Greenland, a Danish territory. The Arctic island is not merely an icy expanse; it occupies a vital strategic location between North America and Europe, and possesses vast natural resources and rare minerals that have become coveted by major powers.
Last Saturday, Trump pledged to unleash a rising wave of tariffs on European countries as a means of pressuring them to allow the United States to purchase the island. This escalation recalled previous attempts and diplomatic skirmishes over the island's status, but the use of tariffs has moved the dispute from the political arena to the heart of the global economy, prompting EU ambassadors to consider immediate retaliatory measures.
Safe havens are thriving amid trade war fears
This tension cast a dark shadow over risk appetite in the markets; US stock futures fell, the dollar weakened, and capital flowed into traditional safe havens. Alongside gold, the Japanese yen and the Swiss franc also saw significant gains.
In this context, Matt Simpson , senior analyst at StoneX, commented, "Geopolitical tensions have given gold's supporters an additional reason to push the precious metal to new record highs." He added, warning, "With Trump introducing tariffs into the equation, it's clear his threat regarding Greenland is serious, and we may be one step away from a major political upheaval within Europe and NATO."
Analysts' predictions: Gold or silver?
Despite silver's strong performance, analysts have expressed mixed views on the near future. Christopher Wong , a market analyst at OCBC, said, "The medium-term outlook for silver remains positive, supported by a persistent deficit in physical supply and strong industrial demand." However, he cautioned that the rapid pace of the rally warrants caution, noting that the gold-to-silver ratio has fallen sharply from levels near 105 in late 2025 to the 50s currently.
For their part, JPMorgan analysts confirmed their structural preference for gold at the present stage, considering that any price correction in silver may temporarily affect gold, but it will still be a buying opportunity.
As for other metals, platinum rose 0.6% to $2,341.08 an ounce, and palladium climbed 0.1% to $1,801.87.
