Gold and Silver Prices Soar as Trump’s Tariff Threats Shake Global Markets
Gold and silver hit record highs as investors seek safe-haven assets following President Trump’s tariff threats against European nations over Greenland, sending global stocks lower.
Gold and Silver Hit Record Highs After Trump Tariff Threat
Gold and silver surged to record levels on Monday as global markets reacted to fresh trade tensions sparked by U.S. President Donald Trump’s threat to impose new tariffs on European countries opposing his plan to take over Greenland.
Gold climbed to an all-time high of $4,689.39 (£3,499) an ounce, while silver reached $94.08 an ounce, as investors rushed toward so-called “safe haven” assets amid rising geopolitical uncertainty.
At the same time, stock markets across Europe retreated sharply. Investors grew uneasy 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 February 1. He warned the rate could rise to 25% and remain in place until a deal over Greenland is reached.
Reports suggest the European Union is considering retaliatory measures, including a potential €93 billion (£80 billion) package of tariffs on U.S. imports.
The growing standoff pushed investors toward precious metals, which are traditionally viewed as stores of value during periods of instability. Gold has already risen by more than 60% over the past year, driven by global tensions, economic uncertainty, expectations of interest rate cuts, and heavy buying by central banks. Silver has also benefited, boosted further by China’s restrictions on exports of the metal.
“Gold has hit fresh record highs on its glittering run upwards,” said Susannah Streeter, chief investment strategist at Wealth Club. “The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of aggressive U.S. trade and geopolitical policies.”
While metals rallied, equities struggled. London’s FTSE 100 closed nearly 0.4% lower, while the more domestically focused FTSE 250 fell 0.9%. Financial and industrial stocks were among the worst performers, although shares in gold miners such as Fresnillo and Endeavour gained on the back of higher metal prices.
Across Europe, carmakers, technology firms, and luxury brands saw heavy losses. Germany’s DAX fell 1.3%, with BMW, Mercedes-Benz, and Volkswagen each down between 2% and 3%. France’s CAC 40 slid 1.8%, with luxury giants LVMH and Hermès among the biggest fallers.
In contrast, European defence stocks advanced, with Germany’s Rheinmetall and France’s Thales trading higher amid heightened geopolitical concerns.
U.S. markets were closed for a public holiday, but analysts warned that uncertainty remains high. The U.S. Supreme Court is expected to rule soon on whether President Trump exceeded his authority by imposing some tariffs under emergency economic powers—a decision that could arrive as early as Tuesday.
“That could bring another huge upset if the court strikes down the tariffs,” said Danni Hewson, head of financial analysis at AJ Bell.
Trade tensions remain a key risk to the global economy. The International Monetary Fund (IMF), in its latest outlook, described the world economy as “steady” but warned that growth could be threatened by renewed trade conflicts and geopolitical flare-ups.
For now, investors appear to be hedging against that risk—by piling into gold and silver.
