Gold and silver jump as US tariffs dubbed ‘mafia extortion’

Germany’s finance minister, Lars Klingbeil, said in Berlin on Monday that Europe was “constantly facing new provocations and hostility” that President Trump was seeking, and that Europeans needed to make clear “this is the limit”.

Peter Mallin-Jones, an analyst at Peel Hunt LLP, said the US tariff threats over Greenland were “reminiscent of mafia extortion”. He said the impact on precious metals appeared to be a reaction to a shift away from US dollar assets and potential inflation effects from a trade war between the United States and the European Union—let alone the risk that it could dampen economic activity.

Last year, gold posted its best annual performance since 1979, supported by falling US interest rates, continued buying by central banks, and political turmoil linked to Washington. Silver also surged, with prices tripling over the past year.

Greater fund rotation into precious metals—led by investors in China—helped lift gold and silver. Gold holdings in ETFs rose by more than 28 tonnes last week, the biggest increase since September, and expanded in seven of the past eight weeks.

Many analysts expect the striking rally to continue. Citigroup Inc. said last week it expects gold to reach $5,000 within three months, and silver to hit $100 an ounce.

On Monday (January 19, 2026), spot gold rose 1.7% to $4,671.97 an ounce at 12.42pm in London (7.42pm Thailand time), after earlier touching a peak of $4,690.59. Silver rose 3.5% to $93.30, after previously reaching $94.1213. Platinum and palladium also gained, while the Bloomberg Dollar Spot Index fell 0.2%.

More recently, the Trump administration renewed attacks on the Federal Reserve, pushing gold and silver higher as concerns grew about the institution’s ability to control inflation without political pressure.

Investors will also be watching a US Supreme Court hearing on Wednesday over Trump’s attempt to remove Fed Governor Lisa Cook, which could become a key turning point for the central bank’s independence.

Morning price update (January 20, 2026): Spot silver climbed to $94.7295 an ounce in early Tuesday trading, surpassing Monday’s high, while gold held steady at about $4,669 an ounce.