Gold and silver hit record highs as Trump tariff threat rattles markets

"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."

"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%."

Record highs in gold and silver followed a US threat to impose tariffs on several European countries over Greenland, prompting a surge into safe-haven assets. Gold peaked at $4,689.39 (£3,499) per ounce and silver reached $94.08 an ounce as investors sought protection from escalating geopolitical and trade tensions. A proposed 10% tariff potentially rising to 25% was announced, and reports indicate the EU may prepare a €93bn (£80bn) retaliatory package. Equities were mixed: Asian and European benchmarks slipped, German and French indices fell sharply, while mining and defence stocks gained. US markets were closed for a holiday.

Read at Business Matters