Gold Smashes Records as Trump Escalates Greenland Takeover Push

TLDR

• Gold surged to an all-time high of $4,701.78 per ounce during Tuesday’s Asian trading session
• Trump’s Greenland demands and tariff threats on European nations drove safe haven buying
• Proposed 10% tariff on Denmark and seven countries starts February 1, rising to 25% by June 1
• Silver hit record levels before pulling back, while platinum and copper remained elevated
• Dollar weakness and geopolitical uncertainty pushed investors toward precious metals

Gold prices broke through the $4,700 barrier on Tuesday as investors responded to escalating tensions over Greenland. The precious metal reached $4,696.07 per ounce in spot trading, with futures contracts hitting $4,701.96.

President Donald Trump’s continued push for US control of Greenland triggered the rally. He outlined plans for tariffs on Denmark and seven other European countries if no deal materializes.

The proposed tariff structure begins at 10% on February 1. It would then escalate to 25% by June 1 unless the United States completes a Greenland purchase agreement.

Trump addressed reporters Monday about his upcoming meetings at the World Economic Forum in Davos. He expressed confidence that European leaders would not resist his plans for the autonomous Danish territory.

Safe Haven Demand Drives Precious Metals Higher

Markets shifted away from the US dollar as uncertainty mounted. Traders moved capital into gold and other physical assets traditionally viewed as stores of value.

Trump posted on social media Tuesday morning about a phone conversation with NATO Secretary General Mark Rutte. He characterized the discussion about Greenland as productive.

The president emphasized that Greenland is essential for national and world security. He stated there can be no reversal on this position.

OCBC analysts explained that unpredictable foreign policy reduces confidence in US assets. This creates incentives for investors to diversify holdings away from dollar-denominated investments.

The geopolitical backdrop continues to support precious metals prices. Uncertainty rather than active conflict is driving the current market dynamics.

Broader Precious Metals Movement

Silver experienced its own record-breaking session before traders took profits. The metal traded at $94.29 per ounce on Tuesday after reaching new peaks earlier in the week.

Platinum declined slightly to $2,361.47 per ounce. However, it remained well above historical averages despite the modest pullback.

Copper futures on the London Metal Exchange fell marginally to $12,927.58 per tonne. The industrial metal stayed close to recent record levels despite the small decrease.

The rally in physical assets started building momentum in late 2025. Global uncertainty has consistently pushed traders toward tangible commodities.

Wealth Club chief investment strategist Susannah Streeter commented on investor sentiment. She noted that Trump’s approach to alliances and trade policy is creating market anxiety.

European officials are organizing meetings to discuss potential countermeasures. Both sides appear firmly committed to their positions, making near-term resolution unlikely.

Gold futures reached as high as $4,726.20 per ounce during Tuesday’s session. This represented a 2.9% gain at peak levels.

The metals market continues to reflect broader concerns about policy unpredictability. Investors are positioning for continued volatility as the Greenland situation develops.

Trump heads to Switzerland this week for the Davos summit. Meetings with European leaders could provide clarity on the path forward for the territorial dispute.