Gold and silver prices surged to new record highs after U.S. President Donald Trump threatened to impose additional tariffs on eight European countries opposing his proposal for the United States to acquire Greenland, reigniting geopolitical concerns and driving investors toward safe-haven assets.
Gold prices climbed to $4,689.39 per ounce in Monday’s trading, while silver jumped to a record $94.08 per ounce.
Precious metals are traditionally viewed as safe stores of value during periods of uncertainty, and both gold and silver have posted strong gains over the past year amid rising geopolitical and economic risks.
Trade escalation rattles markets
The dispute over Greenland intensified following Washington’s tariff threat, with reports suggesting the European Union is preparing retaliatory measures. On Saturday, Trump announced a 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, effective February 1, with the possibility of increasing the rate to 25% if no agreement on Greenland is reached.
In response, EU officials are reportedly considering a counter-tariff package on U.S. imports worth up to €93 billion.
Mixed performance across global markets
While gold and silver rallied, Asian equity markets recorded modest losses, with Japan’s Nikkei index closing down 0.6%.
In Europe, London’s FTSE 100 opened 0.1% lower, while sharper declines were seen elsewhere: Germany’s DAX fell 1.4%, and France’s CAC 40 slid 1.5%.
U.S. markets were closed on Monday for a public holiday.
Safe-haven demand and rate-cut expectations
“Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs,” said Matt Simpson, senior analyst at StoneX.
Gold set fresh all-time highs in Asian trading at the start of the week, temporarily approaching the $4,700 per ounce level, supported by a combination of geopolitical uncertainty and expectations of lower U.S. interest rates. Silver also extended its rally, benefiting not only from its status as a precious metal but also from its growing industrial importance.
Silver’s dual role fuels volatility
Silver prices rose by more than 4% to a new record near $94 per ounce. Unlike gold, silver plays a dual role as both a store of value and an industrial metal, a characteristic that can amplify price swings as investment flows and industrial demand converge.
In addition, expectations that the U.S. Federal Reserve may begin cutting interest rates later this year have further supported precious metals. Softer U.S. economic data and signs of easing inflation have strengthened speculation of monetary easing, which typically reduces the opportunity cost of holding non-yielding assets such as gold and silver.
Broader geopolitical backdrop
Tensions in the Middle East also contributed to gold’s advance last week, including renewed concerns related to Iran. Overall, the combination of heightened geopolitical risks and monetary policy expectations has created a supportive environment for precious metals, with political developments continuing to play a decisive role in short-term price direction.
Against this backdrop, shares of mining and exploration companies have also posted notable gains, as investors increasingly focus on gold project developers amid the sustained rally in global precious metal prices.
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