Greenland Crisis Escalates + Tariff Threat: Gold Soars to a New High of $4690, European and American Stock Markets Come Under Pressure Across the Board

January 19 News, as the geopolitical risks related to Greenland rapidly escalate, global financial markets’ risk aversion sentiment has significantly strengthened. Influenced by U.S. President Trump’s latest tariff threats, gold prices surged sharply on Monday, reaching a new record high, while European and U.S. stock markets and stock index futures weakened simultaneously, indicating new uncertainties in transatlantic relations.

On the news front, Trump stated over the weekend that if eight European countries, including Germany, France, and the UK, do not support his stance on Greenland, the U.S. will impose additional tariffs on these countries starting next month. This statement quickly triggered strong reactions from Europe and was interpreted by the market as a potential trigger for a new round of U.S.-Europe trade tensions.

Driven by safe-haven funds, spot gold temporarily rose about 2.1%, reaching a high of $4,690 per ounce, setting a new historical high; silver also strengthened, with a single-day increase of 4.4%. In contrast, risk assets generally came under pressure, with the European Stoxx 600 index opening lower and falling further to approximately 1.5%, led by declines in automotive manufacturers and luxury goods sectors.

In the U.S. market, due to the holiday, the spot stock market was closed, but stock index futures had already reflected the pressure. S&P 500 futures fell about 0.9%, and Nasdaq 100 futures declined approximately 1.2%, indicating that technology stocks are also struggling to remain unaffected. Jefferies strategist Mohit Kumar pointed out that the tariff threats signify a clear escalation of Trump’s stance on Greenland, and the market is beginning to price in a more aggressive confrontation path.

European political circles are also adopting a tougher stance. European Commission Executive Vice President Stéphane Séjourné explicitly stated that Greenland “will never become U.S. territory,” and described the tariff threats as typical economic coercion. The EU does not rule out using retaliatory tools to restrict U.S. companies from entering the European market. Barclays strategist Emmanuel Cau also warned that tariff uncertainties pose downside risks to growth prospects in the Eurozone and the UK.

Against the macro background of early 2026, the Greenland crisis, tariff expectations, and geopolitical risks are intertwined, reshaping the logic of global asset allocation. Gold, as a safe-haven asset, has become significantly more attractive, while stock markets may continue to face volatility in the short term.