Gold and silver prices soar as Trump’s Greenland tariff threat triggers global market jitters

Rising geopolitical tensions between the US and Europe push investors towards safe assets, lifting gold and silver to record levels.

Gold and silver prices surged sharply on Monday, January 19, as global markets reacted to heightened geopolitical tensions following fresh tariff threats by US President Donald Trump over Greenland. Investor anxiety drove strong demand for safe-haven assets, pushing precious metal prices to new highs.

In Mumbai, the price of 24-carat gold climbed to ₹1,45,690 per 10 grams, while 22-carat gold was priced at ₹1,33,550 per 10 grams. These rates do not include Goods and Services Tax (GST) and other applicable charges. At the same time, silver prices in the spot market touched a new all-time high of ₹3,05,100 per kilogram.

The rally followed Trump’s statement over the weekend, where he warned of imposing higher tariffs on European allies unless the United States was allowed to purchase Greenland. His remarks reignited debate over the future of the Danish-controlled Arctic island and added fresh strain to US–Europe relations.

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In response, European Union ambassadors met on Sunday and agreed to intensify efforts to prevent the imposition of tariffs on European nations. EU diplomats also indicated that retaliatory measures were being prepared in case the tariffs move forward.

Market analysts pointed to geopolitical uncertainty as a key driver behind the surge in precious metals. StoneX senior analyst Matt Simpson said that rising global tensions have provided another reason for gold prices to push to new levels. He added that Trump’s tariff threats, combined with the Greenland issue, have increased fears of political imbalance within NATO and Europe.

The impact was felt across financial markets, with US stock futures and the dollar weakening as investors shifted to safe-haven assets such as gold, the Japanese yen, and the Swiss franc. A broader risk-off sentiment dominated global trading.

Analysts noted that a low interest rate environment, along with ongoing geopolitical and economic uncertainty, typically supports demand for non-yielding assets like gold, further strengthening prices.