Gold and silver prices surged to record highs on Monday as global markets reacted sharply to renewed trade war fears triggered by US President Donald Trump’s latest tariff threats against several European nations. The move rattled investor confidence and pushed traders toward safe haven assets, while most equity markets declined worldwide.
Market sentiment turned cautious after Trump revived geopolitical tensions by threatening to impose new tariffs on European countries that oppose the United States purchasing Greenland. The US president has repeatedly argued that taking control of the island is vital for national security, a stance that has intensified diplomatic friction across the Atlantic.
Following failed negotiations with Denmark over the autonomous territory, Trump announced plans to impose 10 percent tariffs from February 1, rising to 25 percent from June 1, on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland if they refuse to comply. The announcement sparked immediate backlash, with the affected nations warning that such measures could severely damage transatlantic relations and escalate into a broader economic confrontation.
The tariff threat also puts a recent US European Union trade agreement at risk. German officials have expressed doubts about the deal’s future, while France has urged the EU to consider retaliatory tools, including activating a powerful anti coercion trade instrument for the first time. Reports suggest European leaders are discussing possible counter tariffs on billions of dollars worth of US goods.
As fears of a full scale trade war between major global economies grew, investors rushed to traditional shelters. Gold climbed to a historic high of $4,690.59, while silver reached an unprecedented $94.12, reflecting strong demand amid uncertainty.
Stock markets across Asia and Europe slipped, with losses seen in Tokyo, Hong Kong, Shanghai, Sydney, and Singapore. US and European futures also declined, while the dollar weakened against major currencies such as the euro, pound, and yen.
Analysts say investors are closely watching whether political rhetoric turns into concrete policy, warning that prolonged trade tensions could lead to fragmented supply chains, higher risks, and increased market volatility.
