Gold and silver soar to record highs early Monday on U.S. tariff threats and escalating tensions over U.S. President Donald Trump’s attempts to acquire Greenland, with gold nearing the $4700 mark.
Precious metals traditionally attract haven demand during times of rising geopolitical tensions and economic unrest.
Trump announced Saturday that he would impose 10% tariffs as of Feb. 1 from a list of key European allies who oppose his attempts to claim the island, which is part of Denmark. The tariffs would go up to 25% if an agreement isn’t reached June 1. The comments triggered an emergency meeting of European countries Sunday, and the French president reportedly asked the European Union to activate an anti-coercion instrument.
February gold futures rose 2.1% last week to settle at $4,595.40 an ounce on Comex, though the most-active contract decreased 0.6% Friday. Bullion rose 2% in December after gaining 6.5% in November and increasing 3.2% in October. It rallied 64% last year. The metal rose 27% in 2024. The February contract is currently up $76.30 (+1.66%) an ounce to $4671.70 and the DG spot price is $4669.70.
Most U.S. financial markets are closed Monday for the Martin Luther King Jr. holiday, so Monday Comex trading will settle on Tuesday.
March silver futures climbed 11% last week to settle at $88.23 an ounce on Comex, though the most-active contract fell 4.5% Friday. The white metal has hit a series of record highs in recent weeks amid surging industrial demand. Silver soared 24% in December after increasing 19% in November and rising 3.3% in October. It climbed 141% last year after rising 21% in 2024. The March contract is currently up $5.138 (+5.80%) an ounce to $93.675 and the DG spot price is $93.91.
The trade standoff between the U.S. and European nations over Greenland could trigger a export controls and countermeasures on either side that would limit consumers’ access to goods from across the Atlantic.
Gold also remained elevated on last week’s criminal probe against Federal Reserve Chair Jerome Powell, which has reigniting concerns about the central bank’s independence, as well as the ongoing situation in Venezuela.
Investors are also watching the economy, with Fed policymakers set to meet on monetary policy next week. Last week, two key inflation reports this week, the consumer price index and producer price index, dampened expectations that the Fed will cut interest rates with any urgency in the near future.
The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%. Trump has been pushing for even lower rates.
About 95% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 5% expect another 25 basis point cut. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Spot palladium slipped 1.1% last week to $1,805.00 an ounce after dropping 2.2% Friday. Palladium increased 11% last month after adding 0.5% in November and rising 14% in October. Palladium gained 74% last year after dropping 17% in 2024. The current DG spot price is up $40.20 an ounce to $1836.50.
Spot platinum increased 1.8% last week to $2,325.90 an ounce but fell 4.2% Friday. It surged 22% in December after climbing 4.7% in November and rising 1% in October. Platinum increased 122% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $56.20 an ounce to $2385.20.
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