According to Bloomberg, Gold and silver jumped to record highs as President Donald Trump’s push to take over Greenland spurred fears of a damaging trade war between the US and Europe. Geopolitical tensions are acting as the primary catalyst behind the current surge in gold demand, as investors seek protection from rising political and trade-related uncertainty. Renewed disputes involving major economies, particularly around tariffs, strategic territories, and diplomatic confrontations, have increased fears of economic fragmentation and slower global growth.
In such environments, risk assets like equities and growth-sensitive currencies tend to underperform, while gold benefits from its role as a store of value that is not tied to any single government or monetary system. These tensions also raise fears of supply-chain disruptions and higher inflation, which can undermine confidence in fiat currencies, especially the U.S. dollar. As uncertainty intensifies, institutional investors and central banks often increase gold exposure to hedge against volatility, policy risks, and potential financial instability.
