Precious metals headed lower after rising sharply in the previous session following Trump’s promise to impose tariffs on eight European countries that opposed his Greenland ambitions. Silver briefly hit a record high of $94.7295 an ounce on Tuesday, while gold was close to $4,670.
US aggression towards its NATO allies has roiled markets, increasing demand for sanctuary cities and reviving the ‘Sell America’ trade. Investors are now waiting to see how Europe will respond. French President Emmanuel Macron plans to request the activation of the European Union’s anti-coercion instrument, although German Chancellor Friedrich Merz said he is trying to get him to tone down his response.
The crisis – which follows the US seizure of the Venezuelan leader – has given further impetus to what was already a breakneck rally in precious metals. The Trump administration’s renewed attacks on the Federal Reserve have also helped gold and silver this year, as they revived concerns about the central bank’s independence.
“The rally in precious metals did not start with this dispute, and it is unlikely to end with it,” Ole Hansen, strategist at Saxo Bank A/S, said in a note. “Instead, the Greenland episode has given new fuel to a rally that has been building for months, driven by a macro and geopolitical backdrop that has become increasingly uncomfortable for investors who rely solely on financial assets.”
Silver fell 0.6% to $93.8590 an ounce as of 7:56 a.m. Singapore time, and gold fell 0.1% to $4,665.73. The Bloomberg Dollar Spot Index rose 0.1% after losing 0.3% on Monday.
Published on January 20, 2026
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