Gold and silver prices have surged to record highs as escalating tensions between the US and Europe fuel concerns over a damaging trade war. US President Donald Trump’s renewed push to acquire Greenland has triggered a wave of uncertainty, prompting investors to seek safe-haven assets. The threat of tariffs on European nations has further exacerbated the situation, driving demand for precious metals.
Trump’s proposed tariffs, targeting eight European countries including France, Germany, and the UK, are set to commence on February 1, initially at 10 per cent and escalating to 25 per cent in June. This move has ignited discussions among European leaders, who are considering potential countermeasures. Options include retaliatory levies on approximately €93 billion ($162 billion) of US goods. French President Emmanuel Macron is reportedly considering activating the European Union’s anti-coercion instrument, a powerful tool for responding to coercive trade measures.
Analysts suggest that geopolitical risks are contributing to the rally in precious metals. “Fresh trade uncertainty undermines growth prospects, and US foreign policy is eroding trust in the US dollar. It’s a perfect mix for gold and silver,” said Kyle Rodda, an analyst at Capital.com in Melbourne. Spot gold climbed 1.6 per cent to $US4668.76 an ounce in Singapore trading, reaching a peak of $US4690.59. Silver surged 3.2 per cent to $US93.0211, hitting a high of $US94.1213. Platinum and palladium also saw gains.
