"Selling off American" trade dominates market sentiment, with gold and silver hitting record highs.

Against the backdrop of escalating risk aversion, gold and silver both hit historical highs on Tuesday. As President Trump threatens to impose new tariffs on European allies, concerns about global trade and geopolitical prospects deepen, leaving investors with increasingly limited asset choices for risk defense. Trump's tariff threats are related to his attempts to acquire Greenland. Kitco's senior analyst Jim Wyckoff pointed out that this statement "shakes" the foundation of the alliance between the United States and the European Union and NATO. Although the "sell-USA" trade is making headlines again, BullionVault's research director Adrian Ash told the media that this round of anxiety has a wider impact. "Trump's latest blow to the existing world order is scaring off all investors," he added, noting that during the global stock and bond market decline, "gold and silver have hit new highs in all currency denominations." Specifically, gold futures for February delivery on the New York Commodities Exchange closed at $4,765.80 per ounce on Tuesday, up 3.7% for the day, hitting a historical high, while silver futures for March delivery closed at $94.64 per ounce, up 6.9% for the day, also hitting a record. In contrast to the strong performance of precious metals, US assets are under pressure. Weakening US Treasury bonds have pushed the yield on 10-year Treasury bonds up to 4.3%, with the three major US stock indices posting their largest single-day drop of the year, with the Nasdaq falling more than 2.3%, the S&P 500 falling over 2%, and the Dow falling more than 1.7%. In this environment, buying gold is seen as a way to diversify exposure to US Treasuries and the US dollar, a theme often referred to as "currency depreciation trading." Michael Armbruster, co-founder and managing partner of Altavest, believes that despite the stimulus from the news surrounding Greenland possibly fading quickly, the mid-term trend for precious metals remains bullish. He believes that the core driver of the current rise comes from the demand side: gold is mainly supported by central bank buying, while silver is driven by rapid industrial demand expansion. Armbruster pointed out that whether it is the construction of data center infrastructure or Samsung's upcoming production of silver-based batteries, these factors are boosting silver demand, while supply growth is difficult to keep up with. "For investors, a more rational strategy is to buy on dips rather than chase headlines."