Gold Hits $4,689 and Silver Climbs to $94 as Trump’s Truth Social Post Triggers Market Meltdown

Precious metal markets carved historic territory on Monday as both gold and silver achieved unprecedented price levels in response to President Trump’s extraordinary weekend announcement. Gold climbed to an all-time record of $4,689 per ounce before settling at $4,671, representing a robust 1.6% gain. Silver demonstrated even more impressive strength, touching a historic peak of $94.08 per ounce and maintaining a substantial 3.6% advance to close at $93.15 as investors rushed toward traditional safe-haven assets.
The catalyst for market turbulence emerged from Trump’s lengthy Saturday post on Truth Social threatening substantial tariffs against eight European nations as leverage for acquiring Greenland. The proposed tariff structure establishes February 1st as the starting point for 10% levies on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, with automatic increases to 25% scheduled for June 1st absent successful territorial transfer negotiations. The president specified that tariffs would remain “payable until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
European equity markets demonstrated widespread weakness, with France’s Cac index experiencing the steepest decline at 1.8%, followed by Germany’s Dax and Italy’s FTSE MIB each falling 1.3%. Britain’s FTSE 100 showed comparative resilience with a modest 0.4% loss. The automotive sector faced particularly acute pressure as investors contemplated implications for companies heavily dependent on American export markets, with Volkswagen, BMW, Mercedes-Benz, and Stellantis collectively experiencing losses approaching or exceeding 2%. Currency markets also reflected uncertainty, with the dollar declining 0.3% against major currencies.
Financial analysts note the extraordinary nature of Trump’s announcement, delivered through his preferred social media platform in characteristically emphatic language. The lengthy post outlined not only the tariff timeline but also the explicit connection to Greenland acquisition, representing an unprecedented fusion of trade policy and territorial ambitions. Market observers emphasize that this direct communication style, bypassing traditional diplomatic channels, adds additional uncertainty to investor calculus as businesses attempt to assess the seriousness and durability of the threat.
Economic forecasting models project measurable impacts on European growth trajectories, with baseline scenarios estimating 0.2 percentage point reductions in GDP expansion due to potential tariff implementation. The United Kingdom faces particularly severe projections, with economists warning of possible GDP contractions ranging from 0.3% to 0.75%, creating recession risks in adverse scenarios. European Union ambassadors are actively preparing retaliatory measures while simultaneously pursuing diplomatic engagement, as precious metal analysts emphasize that Trump’s demonstrated willingness to employ tariffs as leverage for territorial acquisition has provided gold and silver investors with compelling reasons to drive prices to historic highs.