Global Stocks Slide, Gold Hits New Highs as Greenland Tariff Risk Returns

Gotrade News - Global equities slid on Monday while gold pushed to fresh record highs after President Donald Trump revived tariff threats toward Europe, rattling risk sentiment. The pressure was most visible in Europe, as investors rotated into classic safe-haven assets.

The sell-off reflects markets reassessing the odds that Greenland-related tariff threats turn into real policy, alongside the potential for European retaliation. US cash markets were closed for the Martin Luther King Jr. Day holiday, adding to the focus on overseas price action.

Key Takeaways:

• European benchmarks dropped while gold and silver surged as risk-off positioning returned.

• A proposed tariff path of 10% from Feb. 1, rising to 25% by June, is back on the market’s radar.

• Investors are watching EU response signals, Davos headlines, and prediction-market odds tied to tariffs.

Benzinga reported the Euro STOXX 50 fell 1.3%, with Germany’s DAX down about 1% and France’s CAC 40 lower by 1.5%, while the UK’s FTSE 100 slipped 0.5%. Large-cap names led the move, including ASML down 3.6% and SAP down 2.4%.

In France, LVMH was cited as falling nearly 4% as weakness spread across luxury, while Novo Nordisk also posted notable losses. US equity futures were also lower during European hours, even as Wall Street’s cash session was shut for the holiday.

Why gold is stealing the spotlight

As equities slid, precious metals rallied hard as money moved into defensive positions. Gold, tracked via SPDR Gold Shares, was cited as rising 1.6% to a new record near $4,670 an ounce, while silver jumped more than 3% to around $93.

One takeaway is that investors appear to be taking the Greenland tariff risk more seriously again, rather than dismissing it as noise. deVere Group CEO Nigel Green said the move in gold and the drop in equities suggests markets now believe Trump could act on Greenland-related pressure.

What’s driving the tariff narrative and what comes next

Trump was cited as reiterating a plan to impose tariffs on European countries opposing US ambitions tied to Greenland. The proposal calls for 10% tariffs starting Feb. 1, rising to 25% by June unless the United States gains control of Greenland.

European leaders pushed back quickly, with French President Emmanuel Macron urging the EU to prepare retaliation, including the bloc’s anti-coercion tool. EU officials were cited as warning retaliation could target up to €93 billion of US exports.

The story is unfolding as global leaders gather at the World Economic Forum in Davos, a setting that often amplifies policy headlines. With high-level politics and corporate leadership in the same room, markets tend to react fast to any hint of escalation or de-escalation.

Prediction-market activity was cited as reflecting the risk shift, with Polymarket assigning a 39% probability that Greenland-related tariffs take effect by Feb. 1. Country-specific odds were cited as 36% for Denmark and 35% for Norway, with Germany at 25%.

For 2026, Polymarket was cited as implying a 25% chance the US acquires part of Greenland, while the probability of a military invasion remained lower at 11%. For investors, the practical task is to separate political noise from policy outcomes that can affect earnings, multiples, and cross-border trade.

Gold’s record run is prompting some investors to look at gold-linked exposure, not just as a price bet but as diversification when headline risk spikes. Using an ETF can be a straightforward way to follow the theme without handling physical gold, especially when volatility is the main story.

If you want a simple way to track the gold theme, a gold-miners ETF can be one option to watch as sentiment shifts. On Gotrade, you can start with small amounts and adjust your allocation as your goals and risk tolerance evolve.

Check VanEck Gold Miners ETF (GDX)

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Reference:

• Benzinga, Global Stocks Slide, Gold Hits Record As Trump's Greenland Tariffs Rattle Markets. Diakses pada 20 Januari 2026

• Featured Image: Shutterstock