Gold and silver soared to new highs on Monday, with bullion close to reaching the $4,700 level, while Bitcoin fell, as investors assessed the impact of US President Donald Trump's latest tariff threats, on European countries opposed to his planned takeover of Greenland.
Mr Trump said he would be imposing an extra 10 per cent import levy on Finland, France, Germany, the Netherlands, Norway, Sweden, the UK and Denmark, which controls Greenland as its territory, as they oppose his plan to buy the island.
Gold, widely considered a hedge against inflation, was trading 1.6 per cent higher at $4,669.74 an ounce as of 9.10am UAE time, after having hit an all-time record of $4,689.39 earlier in the day.
The precious metal has now soared 70 per cent over the past year, breaking multiple barriers on its safe haven appeal amid economic and geopolitical risks.
Silver, meanwhile, added 3.38 per cent to reach $93.18 per ounce, after touching a record $94.08. The metal widely used in jewellery and industries is now up nearly 200 per cent in the past 12 months.
Mr Trump said tariffs would rise to 25 per cent in June 2026 unless the US concludes the “complete and total purchase of Greenland”.
“The tariff announcement saw sharp rebukes from the targeted countries – all of whom are party to the Nato military alliance along with the US – and is the most notable escalation in trade policy risks so far in 2026,” said Edward Bell, acting group head of research and chief economist at Dubai bank Emirates NBD.
“The EU and US signed a trade deal midway through 2025 to lessen the first burden of tariffs imposed by the Trump administration in Q2 2025.”
Aside from the geopolitical and economic risks, “simultaneous rallies in gold and silver … signal investors’ demand for downside hedges amid rising concerns on US Federal Reserve independence and fiscal dominance”, analysts at Singapore-based financial services firm DBS Chief Investment Office said.
Both investors and central banks, which have increased their allocations to gold, are seeking diversification and stability, the World Gold Council said in its 2026 outlook.
Bitcoin drops
Bitcoin, meanwhile, lost nearly 3 per cent and was trading at about $92,500, data from CoinMarketCap shows, as risk assets were hit by Mr Trump's tariff plans.
The world's biggest cryptocurrency fell below $92,000 earlier in the day, after a rough 2025 that saw it practically wipe out all its gains made after Mr Trump, perceived as being a pro-crypto president, returned to power.
Ethereum, the second largest crypto, retreated about 3.4 per cent, while other digit assets logged in steeper losses.
“Market participants say the move looks less crypto-specific and more about global risk sentiment,” analysts at India-based Chris Wealth Management said.
“Around $600 million worth of bullish crypto positions were liquidated in the last 24 hours, highlighting how quickly leverage unwound as uncertainty rose.”
Analysts now see the $90,000 level as a key support for Bitcoin. “While near-term volatility remains high, some believe institutional demand could provide a floor if broader market conditions stabilise,” they said.
Despite its losses, Bitcoin could move back towards its highs in 2026, thanks to easier financial conditions, a weaker US dollar and persistent exchange-traded fund inflows, market experts previously said.
