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.
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