Silver hits record high as US-EU crisis over Greenland simmers

Silver briefly touched a record of $94.7295 an ounce on Tuesday and gold was near $4,670.

• Silver hit a record high, gold traded near peak amid US-Europe trade war fears
• Trump's Greenland push and US aggression boost demand for safe-haven metals
• European leaders debate response as precious metals rally continues

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Silver hit a record high and gold traded near an all-time peak as President Donald Trump’s push to take over Greenland fueled fears of a US-Europe trade war and kept markets on edge.

The precious metals edged lower, after rising sharply in the previous session following Trump’s pledge to put tariffs on eight European nations that opposed his Greenland ambitions. Silver briefly touched a record of $94.7295 an ounce on Tuesday and gold was near $4,670.

The US’s aggression toward its NATO allies has rattled markets, buoying demand for havens and reviving the ‘Sell America’ trade. Investors are now waiting to see how Europe will react. French President Emmanuel Macron intends to request activation of the European Union’s anti-coercion instrument, although German Chancellor Friedrich Merz said he’s trying to get him to tone down his response.

The crisis — coming hot on the heels of the US’s seizure of Venezuela’s leader — has added further impetus to what was already a breakneck rally in precious metals. The Trump administration’s renewed attacks on the Federal Reserve have also aided gold and silver this year, as they’ve revived concerns about the independence of the central bank.

“The rally in precious metals did not begin with this dispute, and it is unlikely to end with it,” Ole Hansen, a strategist at Saxo Bank A/S, said in a note. “Instead, the Greenland episode has poured fresh fuel on a rally that has been building for months, driven by a macro and geopolitical backdrop that has become increasingly uncomfortable for investors reliant on financial assets alone.”

Silver dipped 0.6% to $93.8590 an ounce as of 7:56 a.m. Singapore time, and gold declined 0.1% to $4,665.73. The Bloomberg Dollar Spot Index added 0.1% after losing 0.3% on Monday.