Bessent says European retaliation over Greenland tariffs is ‘unwise’
Treasury Secretary Scott Bessent has called on US allies to avoid retaliation as tensions rise over US plans for Greenland.
Precious metals prices hovered near all-time highs as the United States and Europe move toward escalating their smoldering trade war.
On the afternoon of January 19th, gold was trading near $4,676.70 per ounce, and silver had topped $94 per ounce.
On January 17, President Donald Trump announced new 10% tariffs on products from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, citing opposition to U.S. control of Greenland. In response, the leaders of these countries said the threat “risks damaging transatlantic relations and sending them into a dangerous downward spiral.”
U.S. stock and bond markets were closed Monday for a federal holiday commemorating Martin Luther King Jr., but stocks sold around the world.
Precious metals are often used as a hedge against global turmoil. These are considered potentially safer than assets such as corporate stocks that depend on a growing economy and exist independently of individual countries and central banks.
“Since Liberation Day, investors are looking to reduce the dominance of U.S. assets in their portfolios and support gold, precious metals and[emerging market]assets more broadly,” Goldman Sachs analysts said in a Jan. 19 analysis. “Emancipation Day” was the name of President Trump’s April 2025 tariff announcement that shocked financial markets.
Goldman analysts said the bank is “moderately risk-oriented” and added that commodities are a strong option for diversification against geopolitical tensions. “We prefer precious metals over energy. Markets are already pricing geopolitical risks more heavily into gold than oil.”
