Signs of a U.S.-EU Transatlantic Alliance Rift
Heightened Risk Aversion in Global Markets
As concerns grow over a potential rift in the "Transatlantic Alliance" between the United States and Europe due to U.S. President Donald Trump's plan to annex Greenland, international gold and silver prices are repeatedly hitting record highs. In addition to territorial disputes, escalating tensions that have developed into a trade war between the United States and the European Union (EU) are rapidly spreading risk-averse sentiment in global financial markets, with investors moving their funds into safe-haven assets such as gold and silver.
As of 10:17 a.m. local time on the 19th at the New York Mercantile Exchange (COMEX), February gold futures were trading at $4,672.1 per ounce, up 1.67% from the previous session. This marks another all-time high, following last week's record-breaking surge.
Silver prices are also soaring alongside gold. March U.S. silver futures reached a record high, trading at $93.875 per ounce, up 6.03% from the previous day.
The immediate catalyst for this surge in precious metal prices is the heightened geopolitical uncertainty triggered by President Trump's ambitions to annex Greenland. President Trump announced that he would impose tariffs on imports from eight European countries until a "complete and comprehensive purchase" agreement for Greenland is reached. Accordingly, he stated plans to impose a 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland starting February 1, and to raise it to 25% beginning June 1.
The European Union (EU) has also announced plans for countermeasures. The EU is considering invoking the Anti-Coercion Instrument (ACI), which would allow it to restrict transactions in services, foreign direct investment (FDI), financial markets, public procurement, and intellectual property rights with third countries that pose economic threats to its member states. This measure is referred to as a "trade bazooka" due to its powerful impact. The controversy over the incorporation of Arctic territories has thus emerged as a flashpoint in international politics and economics.
Recent U.S. airstrikes and intervention in Venezuela, as well as the potential for military tensions involving Iran, have also been cited as factors driving demand for safe-haven assets. On January 3, the United States arrested Venezuelan President Nicolas Maduro and took control of the country's oil industry. President Trump also hinted at possible military action in Iran, citing anti-government protests and domestic unrest, although he has recently toned down his rhetoric.
Given that these geopolitical risks are likely to persist for the time being, the strong momentum in safe-haven assets such as gold and silver is expected to continue.
George Chebely, portfolio manager for natural resources at Ninety One, stated in the 2026 sector outlook report, "The rally in gold is not only powerful but is also based on solid fundamentals. Considering the possibility of a decline in real interest rates and the trend of central banks diversifying their foreign exchange reserves, gold prices are more likely to remain at current levels or rise further, rather than experience a sharp drop."
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