Gold hits record high as Greenland tensions fuel trade war fears

Gold hit a record high, while silver retreated from an all-time peak, as President Donald Trump’s push to take over Greenland stoked fears of a potential US–Europe trade war.

Spot gold rose to $4 694.35 an ounce on Tuesday as markets waited for Europe’s response to Trump’s threat to impose tariffs on eight European nations that opposed his Greenland ambitions. Silver touched an all-time peak of $94.7295 an ounce earlier, before retreating.

The US’ threat toward its NATO allies has rattled markets, buoying demand for havens and reviving the “Sell America” trade. French President Emmanuel Macron intends to request activation of the European Union’s anti-coercion instrument, although German Chancellor Friedrich Merz said he’s trying to get Macron to tone down his response.

“We have entered an era of resource nationalism between major powers,” Peter Kinsella, global head of FX strategy at Union Bancaire Privee SA, said in an interview on Bloomberg Television. Currencies are not necessarily the best way to play this geopolitical theme, he said, adding that gold’s trajectory now is upward.

The crisis — coming hot on the heels of the US’ seizure of Venezuela’s leader — has added further impetus to what was already a breakneck rally in precious metals. The Trump administration’s renewed attacks on the Federal Reserve have also aided gold and silver this year, as they’ve revived concerns about the independence of the central bank.

“The rally in precious metals did not begin with this dispute, and it is unlikely to end with it,” Ole Hansen, a strategist at Saxo Bank A/S, wrote in a note. “Instead, the Greenland episode has poured fresh fuel on a rally that has been building for months, driven by a macro and geopolitical backdrop that has become increasingly uncomfortable for investors reliant on financial assets alone.”

Gold rose 0.5% to $4 692.15 an ounce as of 12:52 p.m. in Singapore, while silver fell 0.2% to $92.2147 an ounce. The Bloomberg Dollar Spot Index was flat after losing 0.3% on Monday. Platinum and palladium declined.

Investors will be keeping close tabs on the US Supreme Court’s argument on Trump’s effort to fire Fed Governor Lisa Cook, which is due Wednesday and could be pivotal for the central bank’s continued independence.

© 2026 Bloomberg

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