Gold and silver costs surged to contemporary file highs after US President Donald Trump threatened to impose new tariffs on a bunch of European nations opposing his proposed takeover of Greenland, triggering a renewed rush into safe-haven belongings.
Gold climbed to a peak of $4,689.39 (£3,499) an oz. on Monday, whereas silver touched $94.08 an oz., as traders sought safety from escalating geopolitical and commerce tensions. Valuable metals are historically seen as a retailer of worth during times of uncertainty, and each have already loved a powerful rally over the previous yr.
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, except a deal on Greenland is reached. He warned the levy may rise to 25% at a later stage. Stories counsel the EU is getting ready a possible €93bn (£80bn) retaliatory tariff bundle in response.
Whereas bullion costs jumped, fairness markets had 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 valuable 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 beneath stress: 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 factors.
US markets had been closed for a public vacation, limiting international buying and selling volumes.
Susannah Streeter, chief funding strategist at Wealth Membership, stated the rally underlined gold’s renewed attraction. “Gold has hit contemporary file highs on its glittering run upwards,” she stated. “The valuable steel is holding much more attract as a protected haven as worries unfold concerning the repercussions of aggressive US commerce and geopolitical insurance policies.”
Gold costs rose by greater than 60% final yr, pushed by persistent international tensions and financial uncertainty, a backdrop that now appears set to proceed into 2026.
