Gold is trading higher than 1.5%, while silver is up more than 3% at the start of the European session on Monday, January 19th, the opening session of the week. Both currencies reached new record highs as trade tensions between the United States and the European Union over Greenland escalated, driving demand for safe-haven assets. Gold is trading up approximately 1.62% at $4,670 per ounce, while silver is trading at $93.16 per ounce, up 3.58%.

US President Donald Trump’s threat earlier this week boosted demand for safe-haven assets after he announced that the US would impose new tariffs on Denmark, Sweden, France, Germany, the UK, the Netherlands, and Finland. These tariffs would start at 10% in February and increase to 25% in June until an agreement is reached to purchase Greenland in its entirety. The US president refuses to relinquish control of Greenland and has kept military options on the table.

In response, the European Union, according to statements by Council President António Costa, decided to hold an emergency summit to discuss the US president’s threat and form a support coalition for Denmark and Greenland. This escalates the conflict between the EU and Washington and further fuels the demand for safe-haven assets.

The US dollar index is trading down 0.20% at the start of the week, at 98.95, supporting gains in metals. Markets are awaiting the consumer spending inflation figures due at the end of the week on Thursday.

Platinum is trading at $2,356, up 1.20%, while palladium is up approximately 0.34%, trading at $1,806.