Washington: Gold has moved sharply higher as investors have turned towards safe-haven assets following renewed trade tensions between the United States and several European nations.
The price of gold has touched $ 4,689.39 (£3,499) per ounce, while silver has climbed to $ 94.08 per ounce, reflecting heightened concern across global financial markets. Precious metals have continued to attract strong demand as uncertainty surrounding tariffs and geopolitical disputes has unsettled investors.
The latest surge has followed an announcement by US President Donald Trump that a 10 percent tariff would be imposed on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland starting from February 1.
Trump has indicated that the tariff could later rise to 25 percent and would remain in place until an agreement related to Greenland is reached. Reports have suggested that the European Union has considered a response that could include tariffs worth €93 billion (£80 billion) on US imports.
Gold has traditionally been viewed as a store of value during periods of instability, and the current environment has reinforced its appeal. Over the past year, gold prices have risen by more than 60 percent, driven by fears of global conflict, economic uncertainty, and shifting trade relationships.
Silver has followed a similar path, benefiting from both its role as a safe-haven metal and its importance in industrial applications. Additional support has come from China’s restrictions on silver exports, which have tightened global supply and added upward pressure to prices. The performance of Gold and silver has stood in sharp contrast to equity markets, which have struggled to maintain stability.
European stock markets have declined as fears of a widening trade dispute have intensified. London’s FTSE 100 index has closed nearly 0.4 percent lower, while the FTSE 250 has fallen by 0.9 percent. In Germany, the Dax index has dropped 1.3 percent, with major car manufacturers such as BMW, Mercedes-Benz and Volkswagen recording losses of between 2 percent and 3 percent.
Despite the broader market weakness, shares in gold mining companies have gained. Firms such as Fresnillo and Endeavour have benefited directly from the rise in precious metal prices. Defence stocks across Europe have also advanced, reflecting growing concerns over geopolitical risk. Meanwhile, markets in the United States have remained closed for a public holiday, limiting immediate reactions from Wall Street.
The outlook remains uncertain as the US Supreme Court is expected to rule on whether some tariffs imposed by President Trump exceeded presidential authority under the International Emergency Economic Powers Act. A decision against the tariffs could trigger sharp movements across markets.
The International Monetary Fund has also warned that trade tensions remain one of the greatest threats to global economic growth, underlining the fragile state of investor confidence.
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