Gold and silver prices surged to fresh record highs after US President Donald Trump threatened to impose new tariffs on a group of European countries opposing his proposed takeover of Greenland, triggering a renewed rush into safe-haven assets.
Gold climbed to a peak of $4,689.39 (£3,499) an ounce on Monday, while silver touched $94.08 an ounce, as investors sought protection from escalating geopolitical and trade tensions. Precious metals are traditionally viewed as a store of value during periods of uncertainty, and both have already enjoyed a strong rally over the past year.
The move came after Trump announced that a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would take effect from 1 February, unless a deal on Greenland is reached. He warned the levy could rise to 25% at a later stage. Reports suggest the EU is preparing a potential €93bn (£80bn) retaliatory tariff package in response.
While bullion prices jumped, equity markets were more subdued. Asian stocks slipped modestly, with Japan’s Nikkei closing 0.6% lower. In Europe, London’s FTSE 100 edged down 0.1%, though mining stocks benefited from the rally in precious metals, with Fresnillo and Endeavour among the risers.
Elsewhere, markets more exposed to trade tensions fell more sharply. Germany’s Dax dropped 1%, weighed down by carmakers including BMW, Mercedes-Benz and Volkswagen. France’s Cac 40 slid 1.2%, with luxury groups under pressure: LVMH fell 3.8% and Hermès dropped 2.5%.
By contrast, European defence stocks traded higher, reflecting heightened geopolitical risk. Germany’s Rheinmetall and France’s Thales both posted gains.
US markets were closed for a public holiday, limiting global trading volumes.
Susannah Streeter, chief investment strategist at Wealth Club, said the rally underlined gold’s renewed appeal. “Gold has hit fresh record highs on its glittering run upwards,” she said. “The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of aggressive US trade and geopolitical policies.”
Gold prices rose by more than 60% last year, driven by persistent global tensions and economic uncertainty, a backdrop that now looks set to continue into 2026.
