Gold and silver prices surged to historic highs at the start of the week, as rising geopolitical tensions between the United States and Europe triggered a fresh rush into safe-haven assets. Investor anxiety has intensified following US President Donald Trump’s renewed push to acquire Greenland, a move that has sharply escalated the risk of a full-blown trade confrontation between Washington and several European capitals.
Spot gold climbed to around $4,670 per ounce, while silver jumped as much as 4.4%, reflecting strong demand for precious metals amid a weakening dollar and growing uncertainty across global markets. The rally builds on momentum from the previous week, when silver briefly surged past $90 per ounce for the first time on record and gold pushed beyond $4,630.
The surge was not limited to precious metals. Tin led gains among base metals, rising as much as 6%, while copper briefly touched a record high before paring back some of its gains. The broad rally underscores heightened investor concern over global trade, political risk, and the future direction of monetary policy.
Trade war fears take centre stage
Tensions escalated after the Trump administration announced plans to impose new tariffs on eight European countries, including France, Germany, and the United Kingdom. The countries are among those opposing Washington’s stance on Greenland, according to US officials.
Under the proposed measures, 10% tariffs are set to take effect on February 1, with the rate scheduled to rise to 25% by June if negotiations fail to ease tensions. European leaders are expected to hold emergency talks in the coming days to assess the economic and political implications of the move.
EU member states are reportedly considering retaliatory tariffs on up to €93 billion ($108 billion) worth of US goods. French President Emmanuel Macron is also said to be weighing the activation of the European Union’s anti-coercion instrument (ACI)—a powerful trade defence mechanism that would allow the bloc to respond forcefully to what it deems coercive economic actions.
Metals rally driven by global uncertainty
Precious metals have posted strong gains since the beginning of 2026, extending the sharp upward trend seen throughout much of 2025. Analysts say the rally reflects a combination of geopolitical stress, fears of currency debasement, and growing concerns about the independence of key institutions.
Market sentiment has been further unsettled by the US government’s seizure of Venezuela’s leader and renewed rhetoric around Greenland. At the same time, President Trump’s repeated public criticism of the US Federal Reserve has stoked worries about political interference in monetary policy.
These concerns have fueled what market participants describe as the “debasement trade,” where investors rotate out of fiat currencies and government bonds into hard assets such as gold and silver, particularly as public debt levels continue to rise.
Adding to the momentum, Chinese investors have been increasing their exposure to metals, contributing to a broader global shift into commodities. Exchange-traded funds backed by gold recorded inflows of 28 tonnes last week—an increase of 0.9%—marking the largest weekly rise since September. ETF holdings have now expanded in seven of the past eight weeks, highlighting sustained investor appetite.
Market snapshot
As of 6:59 a.m. Monday, spot gold was up 1.6% at $4,670.47 per ounce, after earlier touching a peak of $4,690.59. Silver rose 3.4% to $93.18, having briefly reached $94.12. Platinum edged slightly higher, while palladium slipped marginally. Meanwhile, the Bloomberg Dollar Spot Index declined by 0.2%, supporting gains in dollar-priced commodities.
Investors are also closely monitoring an upcoming US Supreme Court hearing, scheduled for Wednesday, which will consider President Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook. The outcome of the case could have far-reaching implications for the Fed’s autonomy and has added another layer of uncertainty to already fragile global markets.
What you should know
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Gold, silver, copper, and tin all hit fresh record highs last week, marking a dramatic start to 2026 for commodities.
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Commodity markets have delivered outsized gains since late 2025, driven by geopolitical risks and expectations of further US interest rate cuts aimed at supporting economic growth.
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Analysts say precious metals are likely to remain well-supported as long as trade tensions persist and confidence in traditional financial assets remains under pressure.