NEW YORK — Gold and silver prices surged to historic highs on Monday, as renewed tariff threats from former US President Donald Trump sent shockwaves through global financial markets and pushed investors toward safe-haven assets.
Spot gold climbed to an all-time intraday high of $4,689.39 per ounce before easing slightly to trade near $4,666, reflecting intense demand amid rising geopolitical and trade uncertainty. At the same time, US gold futures for February jumped 1.7 percent to $4,671.40 per ounce, reinforcing bullish sentiment across precious metals markets.
Silver followed gold’s momentum, also breaking past previous records as traders sought protection against potential economic disruptions tied to escalating trade tensions between the United States and Europe.
Trump Tariff Threats Trigger Safe-Haven Rush
The rally was sparked after Trump warned of new tariffs targeting European countries, reviving fears of a broader trade confrontation similar to the disputes seen during his first term. Market participants reacted swiftly, rotating out of risk-sensitive assets and into traditional stores of value such as gold and silver.
Analysts say precious metals are responding not only to tariff concerns, but also to broader uncertainty surrounding global trade, inflation expectations, and currency stability. Trump’s rhetoric has raised concerns that renewed tariffs could disrupt supply chains, push up consumer prices, and slow economic growth across major economies.
“Whenever trade tensions flare up, gold becomes the immediate beneficiary,” said one senior commodities strategist. “This move shows that markets are pricing in higher geopolitical risk and the possibility of prolonged economic volatility.”
Weak Dollar and Rate Expectations Fuel the Rally
Another factor supporting gold’s record-breaking run is a weaker US dollar, which makes dollar-denominated commodities more attractive to overseas buyers. In addition, expectations that the Federal Reserve could eventually pivot toward looser monetary policy have further boosted demand for non-yielding assets like gold and silver.
Lower real interest rates reduce the opportunity cost of holding precious metals, a dynamic that has played a major role in gold’s sustained upward trend over recent months.
Silver, which has both industrial and investment demand, benefited from the same macroeconomic forces. Concerns that tariffs could impact manufacturing and technology supply chains have added to silver’s appeal as both a hedge and a strategic commodity.
Global Markets React to Rising Uncertainty
Equity markets showed signs of nervousness as investors assessed the potential impact of renewed US-Europe trade tensions. European stocks traded mixed, while US futures saw increased volatility as traders weighed the risk of retaliatory tariffs and slower global growth.
Gold’s latest surge marks one of the strongest rallies in the metal’s history, underscoring how sensitive markets remain to political developments and policy signals from Washington.
Market watchers note that if tariff threats escalate into concrete policy actions, precious metals could see further upside, especially if inflation pressures re-emerge or global growth expectations weaken.
Investor Sentiment Turns Defensive
Institutional and retail investors alike have increased allocations to gold-backed exchange-traded funds and physical bullion, signaling a defensive shift in portfolio strategy. Silver ETFs and futures markets have also seen rising volumes, reflecting growing confidence that the precious metals rally may extend further.
With geopolitical risks, trade policy uncertainty, and central bank decisions all intersecting, gold and silver continue to assert their role as core safe-haven assets in times of global instability.
