Gold Surpasses $4,720 and Silver Nears $94.5 Amid Greenland Tensions and Shift to Safe Havens

London | EcoPulse24

Precious metal prices surged to new record highs as escalating trade and political tensions between the United States and the European Union boosted demand for safe-haven assets and prompted investors to reduce risk exposure.

Gold climbed about 1% to surpass $4,720 per ounce during Tuesday trading, marking a new record. The rise was fueled by renewed tensions between Washington and Brussels after Denmark increased its military presence in Greenland, while US President Donald Trump did not rule out the use of force to control the island. Further pressure came as Washington threatened to impose an additional 10% import tariff on eight European countries starting February 1, with the possibility of increasing to 25% in June unless the US is granted rights to the island. EU leaders are preparing to discuss countermeasures at an upcoming emergency summit.

Meanwhile, investors are awaiting the delayed release of the US Personal Consumption Expenditures (PCE) report later this week, seeking clearer signals on the Federal Reserve’s monetary policy path. Gold’s strong performance this year extends significant gains seen in 2025, supported by earlier geopolitical tensions in Venezuela and Iran, alongside ongoing concerns over US monetary policy independence.

Silver traded near $94.5 per ounce, holding at historically high levels amid increased hedging demand. Interest in silver has grown as analysts warn that Europe’s large holdings of US financial assets could become leverage if the trade dispute escalates. Silver also experienced recent volatility after the US administration decided not to impose tariffs on critical minerals, including silver, which was added last year to the list of strategic minerals due to its role in clean energy technologies and electronics.

EcoPulse24 Analysis:
The strong move toward gold and silver reflects a clear investor shift from seeking returns to capital preservation amid heightened geopolitical and trade risks. Gold’s break to historic highs suggests the market is pricing in prolonged tensions rather than transient events, while silver benefits both as a safe haven and for its strategic industrial importance. Unless clear political or monetary signals emerge to calm concerns, precious metals are likely to remain in focus.