Gold and silver prices soared to new all-time highs on Monday, January 19, 2026, after global stock markets weakened sharply. The sudden spike followed U.S. President Donald Trump’s renewed tariff threats against several European nations over their refusal to support Washington’s proposed acquisition of Greenland, a move that reignited fears of an escalating trade war.
The renewed tensions intensified an already unstable geopolitical atmosphere, prompting investors to move quickly toward safe-haven assets as concerns grew over a potential broad-based trade confrontation involving major world economies.
According to reports, Trump — who has long argued that U.S. control of Greenland is essential for national security — heightened the dispute over the weekend when negotiations failed to resolve what he described as a “fundamental disagreement” with European governments over the territory’s future.
On Saturday, he announced that the United States would introduce new tariffs targeting eight European nations that refused to support the takeover plan.
He stated that Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland would face a 10% tariff beginning February 1, which would increase to 25% by June 1 if they continued to oppose the initiative.
European governments responded immediately, issuing a joint statement condemning Washington’s actions.
“Tariff threats undermine transatlantic relations and risk a dangerous downward spiral,” the statement read.
The announcement also raised new doubts about the long-term viability of the trade agreement signed between the U.S. and the European Union just last year.
Germany’s Foreign Minister, Johann Wadephul, speaking on ARD television, expressed skepticism that the agreement could survive the current tensions, saying, “I don’t believe that this agreement is possible in the current situation.”
In France, officials close to President Emmanuel Macron indicated that he may urge the European Union to activate its “anti-coercion instrument” if the U.S. implements the tariffs.
This mechanism, which has never been triggered before, would allow the EU to restrict certain American goods and services from entering its vast 27-nation market of approximately 450 million consumers.
Reports from Bloomberg also suggested that EU member states were already discussing retaliatory tariffs potentially targeting up to €93 billion ($108 billion) worth of U.S. products.
The increasing likelihood of a transatlantic trade war rattled global financial markets, driving investors toward traditional safe-haven assets.
Gold jumped to a record high of $4,690.59, while silver rose to an unprecedented $94.12, building on earlier gains fueled by Trump’s recent threats against Iran and his administration’s involvement in the removal of Venezuelan President Nicolás Maduro.
Asian stock markets reacted negatively, with major indices closing lower across Tokyo, Hong Kong, Shanghai, Sydney, Singapore, and Wellington. Only Seoul and Taipei managed slight gains.
European and U.S. futures also trended downward, signaling persistent investor anxiety ahead of market openings in the West.
Dollar Weakens as Euro and Yen Strengthen
The U.S. dollar slipped against other major currencies as risk-averse sentiment increased. The euro, British pound, and Japanese yen all gained value, reflecting a shift toward currencies perceived as relatively stable during global uncertainty.
Market strategist Charu Chanana of Saxo Markets noted that investors will be watching closely to see whether Washington and Brussels move from warnings to concrete policy.
She explained that the timeline matters significantly:
“The next signpost is whether this moves from rhetoric to policy, and that is why the concrete dates matter,” she said.
Chanana also highlighted that every step taken by Europe will be closely evaluated by markets.
“On the European side, the decision path matters as much as the headline, because there is a difference between merely mentioning the anti-coercion instrument as a signal and formally pursuing it as action,” she added.
Even if the immediate tensions ease, she warned of deeper structural risks ahead:
“Even if the immediate tariff threat gets negotiated down, the structural risk is that fragmentation keeps rising, with more politicised trade, more conditional supply chains, and higher policy risk for companies and investors.”
Fresh data indicating that China’s economy grew by 5% last year had little impact on market sentiment. Analysts noted that growth slowed notably in the final quarter, heightening worries about the global economic outlook.
Meanwhile, investors in Seoul and Taipei showed limited concern after U.S. Commerce Secretary Howard Lutnick warned that South Korean and Taiwanese chip manufacturers could face tariffs of up to 100% if they did not increase production within the United States.
Markets at a Glance
By 02:30 GMT:
- Japan’s Nikkei 225 fell 1.0% to 53,412.88
- Hong Kong’s Hang Seng dropped 0.7% to 26,670.01
- Shanghai’s Composite Index slipped 0.1% to 4,099.23
In currency markets:
- The euro strengthened to $1.1628
- The pound rose to $1.3397
- The dollar slipped to 157.54 yen
Oil markets were mixed:
- WTI crude increased slightly by 0.1% to $59.52 per barrel
- Brent crude remained unchanged at $64.15
In major Western markets:
- The Dow Jones Industrial Average fell 0.2% to 49,359.33
- London’s FTSE 100 finished flat at 10,235.29
Analysts warn that with tensions still rising, financial markets are expected to remain volatile as investors monitor whether the threatened tariffs become actual policy.
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