Trump's "Greenland Ambition" Sparks Safe-Haven Frenzy! Gold Price Soars Past $4,730
As U.S. President Trump pushes to take over Greenland, sparking concerns over a potential trade war between the U.S. and Europe, on Tuesday, gold prices reached a new all-time high above $4,700 and surged to $4,730 (UTC+8), while silver prices also continued to hit historic highs, climbing above $95 (UTC+8).
The market is on high alert, waiting to see how Europe will respond to Trump's threat to impose tariffs on eight European countries opposed to his ambitions in Greenland. Trump has threatened that, starting from February 1 (UTC+8), the U.S. will impose increasing tariffs on eight European countries until the U.S. is allowed to purchase Greenland, intensifying concerns about the resurgence of a trade war.
Investors are also closely watching developments in Davos, where Trump has stated he will meet with various parties to discuss his plan to take over Greenland.
UBS analyst Giovanni Staunovo stated: "The threats of additional tariffs and Trump's desire to lower U.S. interest rates, which are fueling growth concerns, are key factors driving gold prices to new highs. We still believe gold prices will continue to rise, with a target of $5,000 per ounce."
The U.S. threat against its NATO allies rattled the markets, boosted safe-haven demand, and revived "sell America" trades. French President Macron plans to call for the activation of the EU's anti-coercion instrument, although German Chancellor Merz said he is trying to persuade Macron to moderate his response.
"We have entered an era of resource nationalism among major powers," Peter Kinsella, Global Head of FX Strategy at Union Bancaire Privee SA, said in an interview. He believes that currencies may not be the best way to participate in this geopolitical theme, and gold remains a strong bet.
The Greenland crisis is adding fuel to the already frenzied rally in precious metals. The Trump administration has renewed its attacks on the Federal Reserve this year, reigniting concerns over central bank independence, which has also boosted gold and silver prices.
Gold has risen nearly 10% in just 20 days (UTC+8) this year, and is up more than 70% since the start of Trump’s second term a year ago. Geopolitical tensions are the primary driver behind the recent record rally, with expectations of monetary policy easing also playing a key role. Strong central bank purchases and ETF inflows have also fueled the unprecedented rise.
Silver has surged 147% in 2025, benefiting from its designation as a critical mineral for the U.S. and a structural market shortage driven by rising demand. Since the start of this year, silver prices have risen over 30%.
"The Greenland incident has injected new momentum into a rally that has lasted for months, one that is being driven by macro and geopolitical dynamics, making investors who rely solely on financial assets increasingly uneasy," Saxo Bank A/S strategist Ole Hansen wrote in a report.
Additionally, investors will be closely watching the U.S. Supreme Court debate scheduled for Wednesday (UTC+8) regarding Trump’s attempt to dismiss Federal Reserve Governor Cook, a case that could be crucial for the central bank's independence.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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