Gold, silver prices jump to new records on Greenland dispute

[Ben Graham]

Gold and silver prices jumped to all-time highs on Monday as concerns over a US-Europe trade war sparked by America’s efforts to take over Greenland drove investors toward the safe-haven metals.

Spot gold surged nearly 2% to a record $4,690.79 per ounce during the early hours of trading, while spot silver set a new peak of $94.10 per ounce after rising by 5%.

The gains extend the precious metals’ start-to-year rally, with gold now up by 6% since the start of 2026 and silver by 18%, breaking successive records along the way.

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The latest rally was fueled by US President Donald Trump’s tariff threats on several European nations including the UK, Germany and France after they resisted his plan to acquire Denmark’s Greenland. The US levies, which are set at 10% and expected to kick in next month, sparked fears of a damaging trade war between the Western powers.

The US’ tariff threats over Greenland are “reminiscent of a mafia extortion racket,” said Peter Mallin-Jones, an analyst at Peel Hunt LLP. “The precious metal impact looks a reaction to a move away from US dollar assets and the potential inflationary impact of a trade war between the US and EU, let alone a chilling effect on economic activity.”

Extended rally

Trump’s bid to annex Greenland has added further impetus to a record-breaking run over the past 12 months that has seen gold and silver end the year with their best performances since 1979. That rally extended into 2026 amid heightened geopolitical tensions and renewed concerns over the Federal Reserve’s independence.

A broader rotation into the metals complex, led by investors in China, has also supported the start-to-year rallies. Exchange-traded funds’ gold holdings jumped by more than 28 tons last week, the biggest increase since September, and have expanded in seven of the last eight weeks, according to Bloomberg.

Many analysts expect the stunning gains to continue, with Citigroup last week forecasting that gold would reach $5,000 within three months and that silver would get to $100 an ounce.

Record start to 2026 brings prospect of $5,000 gold price into view

(With files from Bloomberg)