Today, gold reached a record high, while silver fell from its historic peak, as President Donald Trump's bid to seize Greenland intensified concerns of a potential trade war between the US and Europe.

Investors, frightened by the prospect of another confrontation, are seeking protection in traditional safe-haven assets such as gold, while ignoring silver's volatility. The escalation of tensions around Greenland, seemingly remote geographically, triggered a chain reaction in global markets. Trade agreements that seemed solid yesterday are now in doubt. European leaders, outraged by the administration's aggressive rhetoric and actions, are considering possible countermeasures, including new tariffs and restrictions on imports of American products.

France's Foreign Ministry has stated that the EU could respond to US tariffs on Greenland by restricting American companies' access to public procurement in EU countries. Some even believe Europe could begin selling American assets in response to the new conflict with the US, which would crash the dollar. Recall that Europe currently holds $8 trillion in US stocks and bonds.

Against this backdrop, gold is becoming an increasingly attractive asset. Its ability to preserve value during crises and instability makes it a reliable refuge for capital seeking protection from inflation and currency fluctuations. While the future remains unclear, demand for gold will likely continue to rise, supporting its price at record levels. Today, the spot price of gold rose to $4,694.35 per ounce as markets await Europe's reaction to Trump's threat to impose tariffs on eight European countries opposing his plans for Greenland. Silver earlier hit an all-time high of $94.7295 per ounce, after which it declined.

US threats against its NATO allies have shaken markets, fueling demand for defensive assets and reviving stock trading under the slogan "sell America." French President Emmanuel Macron intends to seek activation of the EU's anti-coercion instrument, although German Chancellor Friedrich Merz said he is trying to persuade Macron to soften his response.

The crisis that erupted immediately after the US capture of Venezuela's leader added further impetus to the already rapid rise in precious metal prices. The administration's renewed attacks on the Federal Reserve also contributed to higher gold and silver prices this year, as they revived concerns about the central bank's independence.

Regarding the current technical picture for gold, buyers need to seize the nearest resistance at $4,708. This would allow a target of $4,771, above which a breakthrough will be rather problematic. The furthest target will be the $4,835 area. In the event of a decline, bears will try to take control of $4,647. If they succeed, a breakout of the range will deal a serious blow to bulls' positions and push Gold toward the $4,591 low with a prospect of reaching $4,531.