Gold and silver prices have soared to record highs as investors seek safe-haven assets amid escalating global uncertainty. The surge follows U.S. President Donald Trump's threat to impose tariffs on European countries in a dispute over Greenland.

Spot gold climbed 1.6% to $4,670.01 per ounce, reaching an all-time high of $4,689.39. U.S. gold futures for February delivery jumped 1.8% to $4,677. Silver also saw a significant increase, with spot silver advancing 4.4% to $93.85 per ounce, after hitting a record high of $94.08.

Trump's recent vow to implement increasing tariffs on European allies until the United States is allowed to buy Greenland has intensified tensions. The tariffs, reportedly starting at 10% on February 1st and increasing to 25% in June, have sparked fears of retaliation from Europe, potentially leading to a major trade war. The EU is reportedly considering countermeasures, including retaliatory levies on billions of dollars worth of US goods.

The President's actions have been characterized as unpredictable, creating geopolitical and economic uncertainty. This uncertainty is driving investors towards precious metals as safe havens. The U.S. stock futures and dollar have also slid as investors moved towards safe-haven assets like gold, the yen, and the Swiss franc.

Federal Reserve Vice Chair for Supervision Michelle Bowman stated on Friday that the central bank should be ready to cut interest rates again if needed, given the fragile job market. Gold tends to thrive in low-interest-rate environments and during economic uncertainties.

Analysts suggest that Trump's tariff threats may be a negotiating tactic ahead of the World Economic Forum in Davos this week. However, the situation remains fluid, and the potential for a full-blown trade war between the EU and the US could have significant consequences. Some analysts believe that tariffs are being redefined as a geopolitical weapon rather than an economic negotiating tool.