Gold Soars Past $4,700 as Trump Doubles Down on Greenland Takeover

TLDR

• Gold prices hit a record high of $4,701.78 per ounce on Tuesday as traders sought safe haven assets
• President Trump maintained demands for Greenland and threatened tariffs on Denmark and seven European countries
• Trump proposed a 10% tariff starting February 1, rising to 25% by June 1 if no deal is reached for Greenland
• Silver prices reached record highs before cooling slightly, while platinum and copper prices also saw movements
• The geopolitical uncertainty drove investors away from the US dollar and into physical assets like gold

Gold prices reached unprecedented levels on Tuesday as President Donald Trump’s demands for Greenland created uncertainty in global markets. Spot gold rose to $4,696.07 per ounce, with futures climbing to $4,701.96 per ounce during Asian trading hours.

The price surge came after Trump threatened new tariffs on European countries. He announced plans for a 10% tariff on Denmark and seven other European nations starting February 1.

According to Trump’s social media posts, these tariffs would increase to 25% by June 1 unless a deal is reached. The tariffs would remain in place until the United States completes a purchase of Greenland.

Trump spoke to reporters on Monday about his plans to discuss Greenland with leaders at the World Economic Forum in Davos, Switzerland. He stated that he does not expect much pushback from European leaders on the issue.

Market Response to Geopolitical Tensions

The autonomous Danish territory has become a focal point of US foreign policy. Trump described Greenland as “imperative for National and World Security” in a Tuesday morning post.

He also mentioned having a phone call with NATO Secretary General Mark Rutte about the situation. The conversation was described as “very good” by the president.

Markets reacted to the uncertainty by moving away from the US dollar. Traders shifted funds into safe haven assets like gold and other precious metals.

OCBC analysts noted that unpredictable US foreign policy can erode policy credibility. This encourages diversification away from the dollar into alternative assets.

Precious Metals See Broad Rally

Silver prices also reached record highs during the rally before experiencing some profit-taking. Spot silver was trading at $94.29 per ounce on Tuesday after hitting new peaks.

Platinum prices fell slightly to $2,361.47 per ounce. Industrial metals like copper remained near recent record highs despite a small decline.

The precious metals rally has been building through late 2025. Traders have been moving into physical assets during periods of heightened global uncertainty.

Wealth Club chief investment strategist Susannah Streeter commented on the market anxiety. She said Trump’s willingness to break old alliances and create trade chaos is causing investor concern.

European leaders are preparing to meet and discuss retaliatory measures. The entrenched positions on both sides make negotiation difficult in the near term.

Gold futures jumped 2.9% to $4,726.20 per ounce at one point during Tuesday trading. This represents a continuation of the safe haven buying trend that has supported precious metals prices.

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