Trump Greenland Tariff Threat Sends Gold to $4,660, Silver Near $94

Gold prices reached an all-time high of $4,660 per ounce on January 19, 2026, as investors reacted to U.S. President Donald Trump's renewed threat of tariffs against several European countries. Silver also hit an intraday peak of $94.12 per ounce. The move followed Trump's weekend announcement that he would impose 10% tariffs on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting in February unless Greenland is sold to the United States according to reports.

The announcement caused immediate global market jitters. Equity markets in Asia, including Tokyo, Hong Kong, and Shanghai, retreated as investors braced for potential trade war fallout. European and U.S. stock futures also declined, reflecting heightened uncertainty. Meanwhile, the U.S. dollar weakened against the euro, sterling, and yen, signaling a shift toward safe-haven assets.

Diplomatic tensions have escalated since Trump's demand to take control of Greenland. A joint statement from the affected countries warned that the tariff threats risked a dangerous downward spiral in transatlantic relations. France, in particular, announced plans to consider using an EU anti-coercion instrument in response, which could include curbing imports from the U.S. and imposing retaliatory levies on $108 billion of American goods.

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Why Did This Happen?

Trump's tariff ultimatum is rooted in his longstanding interest in acquiring Greenland for national security reasons. Despite repeated previous attempts to negotiate with Denmark, the issue has not been resolved, leading to a more aggressive stance this time. Trump's strategy appears to leverage economic pressure to achieve a geopolitical goal, with the threat of rising tariffs—reaching 25% by June—if no progress is made.

The move also raises concerns about the future of a recently signed U.S.-EU trade deal, which aimed to reduce tariffs on a range of goods. German Foreign Minister Johann Wadephul noted that the current situation makes it hard to see the agreement moving forward.

How Did Markets Respond?

The financial markets responded swiftly. Gold and silver prices surged as investors sought refuge from potential global economic instability. Gold hit $4,660, while silver reached $94.12, both new record highs.

Meanwhile, the cryptocurrency market faced sharp losses. Over $800 million in leveraged positions were liquidated in the past 24 hours, with 90.5% of those being long positions. The largest single liquidation was a $25.83 million Bitcoin trade on the Hyperliquid platform.

In equities, Asian markets like Tokyo and Hong Kong fell, while U.S. futures also declined. The dollar weakened as investors rotated into euro and yen assets. The euro and sterling both gained on the day.

What Are Analysts Watching Next?

Analysts are closely monitoring whether Trump's tariff threat will lead to actual policy implementation and how Europe will respond. Charu Chanana of Saxo Markets noted that the key signpost is whether the situation moves beyond rhetoric into concrete actions.

European officials are also evaluating the use of the anti-coercion instrument, which could mark a significant shift in EU trade policy. The measure allows for import restrictions on goods and services from countries deemed to be engaging in coercive economic practices.

The immediate market response suggests heightened risk-aversion. The crypto Fear and Greed Index fell to 44 from a recent high of 61, signaling a more cautious sentiment.

Investors are also keeping a close eye on geopolitical developments. Trump's actions on Greenland come amid broader tensions involving Iran, Venezuela, and global trade policy shifts. These factors are likely to continue influencing market sentiment in the near term.