Gold, silver hit new highs as US punishes Europe with tariffs over Greenland stance

The United States wants to buy Greenland for security purposes.

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The gold price and silver price leapt to new record highs on Monday after the United States announced new tariffs.

The gold price lifted more than 1% to above US$4,670 per ounce, while the silver price spiked 4% to almost US$94 per ounce.

The previous record prices were $4,635.25 per ounce for gold and $92.34 per ounce for silver — both set last week.

Gold and silver prices jump amid flight to safety

Analysts at Trading Economics said investors were flocking to safe-haven assets after US President Donald Trump took his ambition to buy Greenland a step further.

Over the weekend, President Trump announced a 10% tariff on goods from eight European nations to punish their opposition to his aspirations to acquire Greenland.

The eight nations are Denmark, Norway, Sweden, France, Germany, the United Kingdom, The Netherlands, and Finland.

On Truth Social, President Trump posted:

This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland.

President Trump asserts that the US needs to own Greenland, which is an autonomous territory within the Kingdom of Denmark, for security purposes.

The tariffs would start at 10% on 1 February and rise to 25% on 1 June.

The analysts said:

European leaders discussed potential retaliatory measures, including reviving last year's plan to levy tariffs on US goods, while French President Emmanuel Macron reportedly called on fellow leaders to activate the EU's anti-coercion instrument.

The US President's unpredictable nature has created global geopolitical and economic uncertainty since he came to office a year ago.

Uncertainty makes investors nervous, leading to more conservative investment choices, such as buying precious metals.

Of the gold price, the analysts said:

Bullion has already been on a strong upward trajectory this year following a robust performance in 2025, supported by political instability in Venezuela, renewed concerns over the Federal Reserve's independence, and expectations of more US interest rate cuts.

The silver price is rebounding after weakening a little when the US announced it would not put a tariff on critical minerals.

Silver was added to the US Critical Minerals list in November due to tight supply and demand.

Demand is rising because silver is a key input in solar panels, electric vehicles (EVs), and AI infrastructure like data centres.

Citi estimates that the solar industry alone is using 30% of annual silver production.

Tech device manufacturers also use silver to build circuits, connectors, and to solder metals in smartphones and laptops.

How are ASX gold and silver shares faring today?

Northern Star Resources Ltd (ASX: NST) shares are up 2.8% to $27.57 at the time of writing.

The Evolution Mining Ltd (ASX: EVN) share price rose 1.7% to $13.35 and reached a new record of $13.50 in earlier trading.

Newmont Corporation CDI (ASX: NEM) shares are up 1.3% to $171.49 after hitting a new all-time high of $173.12 earlier.

ASX 200 diversified miner South32 Ltd (ASX: S32), one of the world's largest silver producers, is 0.8% higher at $4.20 per share.

Silver Mines Ltd (ASX: SVL) shares are up 8.6% to $2.21 after an announcement about Maverick Springs today.

The Unico Silver Ltd (ASX: USL) share price is 3.4% higher at $1.08 after the company released its latest quarterly report.

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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