Gold and silver hit record highs

Gold and silver jumped to record highs as investors sought safe havens amid renewed trade and geopolitical tensions after U.S. political threats over Greenland. Spot gold rose about 1.6% to $4,670.01 per ounce, briefly touching an all-time peak near $4,689, while spot silver surged roughly 4.4% to $93.85, also setting a fresh record above $94.

The rally followed threats from U.S. leadership to impose escalating tariffs on European allies tied to demands over Greenland, stoking fears of renewed trade confrontation. EU envoys moved to coordinate efforts to dissuade potential U.S. duties and to prepare retaliatory measures should tariffs be enacted. Markets reacted to the prospect that tariffs would disrupt supply chains, lift import costs and boost inflation expectations—factors that typically drive demand for precious metals as hedges.

Currency and bond moves reinforced the precious metals advance: the dollar weakened and government bond yields fell as investors shifted into lower‑risk assets, reducing the opportunity cost of holding non‑yielding gold and silver. Portfolio flows reflected the shift: managers reported increased inflows into bullion-backed funds and rising speculative positions in futures markets, indicating expectations that prices could continue higher if rhetoric or concrete trade actions intensified.

Silver’s outsized move was supported both by safe‑haven buying and by its industrial demand profile, while gold’s gains were driven mainly by its traditional role as an inflation and geopolitical risk hedge. Some analysts warned the rapid pace of the rally raises the prospect of near‑term volatility, but many said underlying support would persist so long as uncertainty, inflation risks and policy volatility remain elevated.

The episode underlines how sensitive global financial markets are to political signals: even suggestions of tariffs or diplomatic escalation can trigger rapid capital reallocations. With trade tensions back on investor radar and inflation concerns heightened, precious metals are likely to stay well supported in the near to medium term unless a clear de‑escalation and stronger growth outlook restore risk appetite.