Gold and silver prices rose to new record highs after US President Donald Trump threatened to impose new tariffs on a group of European countries opposed to his planned takeover of Greenland, sparking a renewed rush for safe-haven assets.
Gold climbed to a high of $4,689.39 (£3,499) an ounce on Monday, while silver hit $94.08 an ounce, as investors sought protection from escalating geopolitical and trade tensions. Precious metals have traditionally been seen as a store of value in times of uncertainty and both have already experienced a strong upswing in the past year.
The move came after Trump announced that a 10 percent tariff on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland would take effect from February 1 unless a deal on Greenland was reached. He warned that the levy could rise to 25% at a later date. The EU is reportedly preparing a possible retaliatory tariff package worth €93bn (£80bn) in response.
While precious metal prices soared, stock markets were more subdued. Asian stocks fell slightly, with Japan’s Nikkei closing 0.6% lower. In Europe, London’s FTSE 100 fell slightly by 0.1%, although mining stocks benefited from the rally in precious metals, with Fresnillo and Endeavor among the risers.
Elsewhere, markets more exposed to trade tensions fell more. Germany’s Dax fell 1%, weighed down by automakers such as BMW, Mercedes-Benz and Volkswagen. France’s Cac 40 slipped 1.2%, with luxury groups under pressure: LVMH fell 3.8% and Hermès fell 2.5%.
In contrast, European defense stocks traded higher, reflecting increased geopolitical risk. Both the German Rheinmetall and the French Thales recorded increases.
U.S. markets were closed for a holiday, limiting global trading volumes.
Susannah Streeter, chief investment strategist at Wealth Club, said the rally underscored gold’s renewed appeal. “Gold has reached new record highs on its rapid upward trajectory,” she said. “The precious metal is becoming even more attractive as a safe-haven asset as concerns about the impact of aggressive US trade and geopolitical policies spread.”
Gold prices rose more than 60% last year, driven by ongoing global tensions and economic uncertainty, a backdrop that is now expected to continue into 2026.
