Gold and silver prices hit record highs on Monday as European shares fell after US President Donald Trump threatened new tariffs tied to a dispute over Greenland.
Record highs for precious metals
Gold touched $4,689.39 (£3,499) an ounce, while silver rose to a peak of $94.08 an ounce.
Precious metals are often treated as safe-haven assets during periods of uncertainty.
Wealth Club chief investment strategist Susannah Streeter said:
“Gold has hit fresh record highs on its glittering run upwards. The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of the US aggressive trade and geopolitical policies.”
Tariffs linked to Greenland dispute
On Saturday, Trump said a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would come into force on February 1st.
He said the tariffs could later rise to 25%, and that the measures would remain until a deal on Greenland was reached.
Market reaction and outlook
AJ Bell head of markets Dan Coatsworth said Trump’s latest tariff threat “turns up the heat to max”.
He added that despite the broad sell-off, “it’s not panic time”.
US markets were closed on Monday for a public holiday.
