Global markets moved sharply into risk-off mode on Monday as former President Donald Trump’s Greenland tariff threats reignited fears of a US-Europe trade war. Investors scrambled for safety, pushing gold and silver to record highs while Bitcoin and other cryptocurrencies tumbled.
Gold and Silver surge to new highs
Spot gold surged 2.1% to near $4,700 per ounce, and silver jumped 4.4% to $94.08 per ounce. The rally pushed gold up 6% year-to-date and silver over 30%. Analysts cite a combination of factors driving the surge: escalating US-Europe trade tensions, a weakening dollar, and concerns over central bank independence amid a Justice Department probe into Fed Chair Jerome Powell.
Silver’s performance has been particularly notable, compressing the gold-silver ratio from 105 in late 2025 to the low 50s. European equities suffered in parallel, with the Stoxx Autos Index dropping 2.2% and luxury stocks falling 2.9%, reflecting investor flight to safe-haven assets.
Trump’s controversial “Board of Peace”
Trump escalated geopolitical tensions by inviting Russian President Vladimir Putin to his newly established “Board of Peace” overseeing Gaza reconstruction, with membership reportedly costing $1 billion per nation. The board, chaired by Trump for life, includes Tony Blair, Jared Kushner, and Mark Carney.
The Kremlin’s cautious response belies broader unease among European allies, as Trump publicly criticized Ukrainian President Zelenskyy while courting Putin. Observers warn that the move could destabilize NATO and signal a shift in US priorities toward deals with autocratic leaders over democratic allies.
Pressure mounts on the Fed
Fed Chair Jerome Powell will attend a Supreme Court session on Wednesday as the court considers Trump’s attempt to fire Fed Governor Lisa Cook over unproven mortgage fraud allegations from 2007. Legal experts note that if Trump succeeds, it could set a precedent for challenging the Fed’s independence, potentially threatening Powell himself.
Cook denies the charges, which involve a long-past loan application. Analysts emphasize that the broader implications for the Federal Reserve’s autonomy far outweigh her individual case.
Bitcoin and Cryptocurrencies retreat
Cryptocurrencies also felt the fallout, with Bitcoin slipping 2.8% to $92,519. The selloff triggered $869.5 million in liquidations, including $229.5 million in Bitcoin long positions. Ether dropped 3.5% to $3,199, Solana fell 6.6%, and even the Trump-branded meme token shed 6.4%.
Traders fled riskier assets as geopolitical uncertainty outweighed blockchain fundamentals. A delayed crypto regulatory bill further pressured the market, prompting investors to move capital into gold and silver. Bitcoin alone lost $92.5 billion in market capitalization overnight.
In summary, Monday’s market activity highlights heightened geopolitical risk, with tariffs, political maneuvers, and regulatory delays driving both safe-haven rallies in precious metals and broad crypto selloffs. Analysts suggest caution as markets digest the potential economic and political fallout.
