Gold and Silver Reach New Heights Amidst Trump's Tariff Announcement on Greenland

Gold and Silver Prices Surge

Gold and silver prices soared to historic highs following President Donald Trump's announcement of new tariffs linked to the ongoing Greenland standoff. Gold reached $4,689.39/oz and silver hit $94.08/oz, reflecting market reactions to the proposed tariff schedule and its implications on global trade.

Key Takeaways

Gold prices surged to $4,689.39 per ounce, while silver prices soared to $94.08 per ounce.
President Trump announced a 10% tariff on goods from several countries starting February 1, 2026, increasing to 25% by June 1, 2026.
The tariff is associated with the U.S. negotiations for the "Complete and Total purchase of Greenland."
European stock markets fell in response to the tariff announcement, indicating a "risk-off" sentiment among investors.
A crucial Monetary Policy Meeting by the Bank of Japan is set for later this month, which could influence market dynamics.

Trump's Tariff Announcement on Greenland

President Trump declared in a Truth Social post that starting February 1, 2026, a 10% tariff will be imposed on "all goods" from countries including Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland. This tariff will increase to 25% from June 1, 2026, until negotiations for the "Complete and Total purchase of Greenland" are concluded.

"This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland," Trump stated in his announcement.

Following this news, market reactions benefited silver more significantly; spot silver climbed approximately 4.4%, reaching $93.85/oz after hitting the $94.08/oz mark, while spot gold rose around 1.6% to $4,670.01/oz after peaking at $4,689.39/oz.

Market Reactions and Trends

The tariff announcement triggered a "risk-off" environment, evident in European markets on January 19, 2026. Major indices such as Germany’s DAX dropped by 1.1%, and the CAC 40 in Paris fell by 1.3%, according to reports from AP News.

Looking ahead, a key macroeconomic event is set for the Bank of Japan’s Monetary Policy Meeting on January 22-23, 2026. The subsequent Statement on Monetary Policy is scheduled for January 23, followed by the Summary of Opinions on February 2.

Important Liquidity Notes

It's worth noting that U.S. markets will be closed on January 19, 2026, in observance of Martin Luther King Jr. Day. Historical patterns suggest this closure may lead to concentrated price movements within futures and FX venues, potentially increasing intraday price swings in leveraged metal products.

What’s Next for Gold and Silver?

While gold’s peak at $4,689/oz is impressive, the real focus lies in the upcoming tariff timeline on February 1 and June 1. These dates are likely to create volatility in USD rates and impact correlations across asset classes.

If the Bank of Japan signals a tightening policy on January 23 amidst escalating U.S. trade restrictions, market participants should prepare for significant movements in JPY crosses. The surge in silver prices to $94/oz may suggest a heightened demand for assets that are traditionally viewed as safe havens, as investors navigate through this evolving economic landscape.