Gold and silver costs surged to contemporary document highs after US President Donald Trump threatened to impose new tariffs on a gaggle of European international locations opposing his proposed takeover of Greenland, triggering a renewed rush into safe-haven property.
Gold climbed to a peak of $4,689.39 (£3,499) an oz. on Monday, whereas silver touched $94.08 an oz., as buyers sought safety from escalating geopolitical and commerce tensions. Valuable metals are historically considered as a retailer of worth in periods of uncertainty, and each have already loved a robust rally over the previous 12 months.
The transfer got here after Trump introduced {that a} 10% tariff on items from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would take impact from 1 February, until a deal on Greenland is reached. He warned the levy might rise to 25% at a later stage. Studies counsel the EU is making ready a possible €93bn (£80bn) retaliatory tariff bundle in response.
Whereas bullion costs jumped, fairness markets have been extra subdued. Asian shares slipped modestly, with Japan’s Nikkei closing 0.6% decrease. In Europe, London’s FTSE 100 edged down 0.1%, although mining shares benefited from the rally in treasured metals, with Fresnillo and Endeavour among the many risers.
Elsewhere, markets extra uncovered to commerce tensions fell extra sharply. Germany’s Dax dropped 1%, weighed down by carmakers together with BMW, Mercedes-Benz and Volkswagen. France’s Cac 40 slid 1.2%, with luxurious teams below strain: LVMH fell 3.8% and Hermès dropped 2.5%.
In contrast, European defence shares traded larger, reflecting heightened geopolitical danger. Germany’s Rheinmetall and France’s Thales each posted positive aspects.
US markets have been closed for a public vacation, limiting international buying and selling volumes.
Susannah Streeter, chief funding strategist at Wealth Membership, mentioned the rally underlined gold’s renewed attraction. “Gold has hit contemporary document highs on its glittering run upwards,” she mentioned. “The valuable metallic is holding much more attract as a secure haven as worries unfold concerning the repercussions of aggressive US commerce and geopolitical insurance policies.”
Gold costs rose by greater than 60% final 12 months, pushed by persistent international tensions and financial uncertainty, a backdrop that now seems to be set to proceed into 2026.
