Gold hit a record high, while silver retreated from an all-time peak, as President Donald Trump\u2019s push to take over Greenland stoked fears of a potential US\u2013Europe trade war.<\/p>\n
Spot gold rose to $4 694.35 an ounce on Tuesday as markets waited for Europe\u2019s response to Trump\u2019s 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.<\/p>\n
The US\u2019 threat toward its NATO allies has rattled markets, buoying demand for havens and reviving the \u201cSell America\u201d trade. French President Emmanuel Macron intends to request activation of the European Union\u2019s anti-coercion instrument, although German Chancellor Friedrich Merz said he\u2019s trying to get Macron to tone down his response.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
![\"\"](\"https:\/\/www.moneyweb.co.za\/wp-content\/uploads\/2026\/01\/447802411-555x353.jpg\")
<\/p>\n
\u201cWe have entered an era of resource nationalism between major powers,\u201d 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\u2019s trajectory now is upward.<\/p>\n
The crisis \u2014 coming hot on the heels of the US\u2019 seizure of Venezuela\u2019s leader \u2014 has added further impetus to what was already a breakneck rally in precious metals. The Trump administration\u2019s renewed attacks on the Federal Reserve have also aided gold and silver this year, as they\u2019ve revived concerns about the independence of the central bank.<\/p>\n
\u201cThe rally in precious metals did not begin with this dispute, and it is unlikely to end with it,\u201d Ole Hansen, a strategist at Saxo Bank A\/S, wrote in a note. \u201cInstead, 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.\u201d<\/p>\n
ADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
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.<\/p>\n
Investors will be keeping close tabs on the US Supreme Court\u2019s argument on Trump\u2019s effort to fire Fed Governor Lisa Cook, which is due Wednesday and could be pivotal for the central bank\u2019s continued independence.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n