Citigroup Forecasts $5,000 Gold Amid Greenland Dispute
A "perfect storm" of geopolitical extortion and central bank uncertainty drives gold to $4,700 as European leaders slam the White House’s "mafia" tactics.
Real estate negotiations rarely threaten to upend the global economy, but then again, few property disputes involve the attempted annexation of the world’s largest island. Gold and silver prices shattered historical ceilings on Monday, driven by a chaotic confluence of trade threats over Greenland and a high-stakes battle for the soul of the Federal Reserve.
Spot gold climbed as high as $4,700 an ounce, cementing a dazzling 70% rally over the past year. Yet, it was silver that stole the show, surging nearly 6% to flirt with $94 an ounce. The catalyst for this frantic flight to safety is President Donald Trump’s ultimatum to European allies: help the U.S. acquire Greenland, or face the consequences.
The White House has announced a punitive tariff schedule targeting eight European nations, including heavyweights like France, Germany, and the UK, for opposing the acquisition. A 10% levy on goods will take effect on February 1, with an escalation to 25% scheduled for June if the diplomatic impasse remains. The aggressive maneuvering has rattled investors, sending the dollar lower and sparking fears of a transatlantic trade war that could be both inflationary and economically chilling.

