BY COMFORT OGBONNA
Gold and silver markets rocketed higher on Monday, lifted by a wave of risk aversion as investors scrambled toward safe-haven assets following President Donald Trump’s latest tariff warning directed at Europe over control of Greenland.
The sharp surge in trading reflected growing anxiety that Washington’s aggressive stance could ignite a prolonged economic and diplomatic confrontation between the United States and its European allies.
Spot gold gained strong momentum, jumping 1.6% to $4,666.11 by 0551 GMT after hitting a fresh record high at $4,689.39 earlier in the session. U.S. gold futures for February added similar strength, advancing 1.7% to $4,671.90 per ounce. Analysts said the rallies signaled mounting global uncertainty as investors reassessed geopolitical risks and the potential fallout from punitive trade measures.
The spark came over the weekend when Trump vowed to steadily impose higher tariffs on European nations until the United States is allowed to purchase Greenland, intensifying an already fraught debate over Denmark’s Arctic territory. European Union diplomats confirmed that ambassadors are working on retaliatory plans should Washington’s threat materialize, setting the stage for a possible transatlantic trade clash with far-reaching market consequences.
Market analysts argue that gold’s ascent highlights its enduring reputation as a hedge against geopolitical instability. StoneX senior analyst Matt Simpson noted that the metal’s relentless rally reflects growing unease, saying investors are now bracing for wider political and security disruptions, including concerns over the future of NATO and power balances across Europe. The dollar and U.S. equity futures slipped in response, deepening the risk-off tone and channeling even more capital toward gold, the Japanese yen and the Swiss franc.
Silver’s rally was even more dramatic. Spot prices surged 3.6% to $93.15 per ounce after touching a record $94.08, supported by intensifying safe-haven flows and fundamental strength in the market. OCBC strategist Christopher Wong emphasized that silver remains underpinned by persistent physical shortages and solid industrial usage. However, he cautioned that the blistering pace of gains may warrant some short-term care, as the gold-to-silver ratio plunged from its 2025 highs near 105 into the low-50s, underscoring silver’s outperformance.
J.P. Morgan analysts meanwhile signaled a preference for gold over silver moving forward. They warned that silver’s sharp price swings could spill over into gold in the near term but argued that gold’s supply and demand balance offers a cleaner and more sustainable bullish outlook. Any correction, they added, is likely to be viewed as an opportunity for investors looking to build positions in the metal.
Other precious metals also saw upward movement. Spot platinum rose 0.6% to $2,341.08 per ounce, while palladium inched 0.1% higher to $1,801.87, as safe-haven interest spilled beyond gold and silver into the broader complex.