Gold and silver prices surged to record levels on Monday as investors sought safety in precious metals following renewed threats of US tariffs on European nations.
Gold reached $4,689.39 (£3,499) an ounce, while silver climbed to $94.08 an ounce, marking fresh highs in the metals’ ongoing rally. The moves came after US President Donald Trump announced plans to impose a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland from 1 February unless a deal is reached over Greenland. Trump warned the tariff could rise to 25% if negotiations fail.
The announcement reignited concerns over trade tensions between the US and its European allies. Reports indicate the European Union is preparing a potential €93bn (£80bn) retaliatory tariff package in response. Investors typically flock to gold and silver during periods of geopolitical uncertainty, viewing the metals as a store of value amid market volatility.
Equity markets were more muted. London’s FTSE 100 edged down 0.1%, while Germany’s DAX fell 1%, weighed down by major automakers including BMW, Mercedes-Benz, and Volkswagen. France’s CAC 40 lost 1.2%, with luxury groups such as LVMH and Hermès retreating 3.8% and 2.5%, respectively.
Mining stocks benefited from the surge in bullion prices. Fresnillo and Endeavour Metals saw gains, reflecting investor confidence in precious metals amid heightened risk. European defence stocks also traded higher, with Germany’s Rheinmetall and France’s Thales posting solid gains, reflecting market sensitivity to geopolitical threats.
Asian equities were broadly lower, with Japan’s Nikkei closing 0.6% down. US markets were closed for the Martin Luther King Jr. public holiday, limiting global trading volumes and reducing market liquidity.
Susannah Streeter, chief investment strategist at Wealth Club, said the rally underlined the growing appeal of gold as a safe-haven asset. “Gold has hit fresh record highs on its glittering run upwards,” she said. “The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of aggressive US trade and geopolitical policies.”
Precious metals have already enjoyed a strong year, with gold rising more than 60% in 2025 as economic uncertainty and global tensions drove investors to protective assets. Analysts say the combination of US trade threats and broader geopolitical risks could continue to support prices through 2026.
The latest surge highlights how closely financial markets are tracking international trade disputes and political developments. With US-EU relations strained and retaliatory measures under consideration, the safe-haven appeal of gold and silver appears set to remain a dominant factor in global markets.