The price of gold surged to a new high as safe-haven demand grew due to rising economic uncertainty sparked by US tariff threats over Greenland.
Donald Trump, at the weekend, threatened tariffs of 10%, rising to 25%, against nations objecting to the US purchasing Greenland.
Spot gold jumped 1.6% to $4,677 per ounce, a new record high, on Monday morning. Silver also rose over 3.6% to almost £94 an oz.
This led to precious metals miners Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF, FRA:6E2) topping the FTSE 100 leaderboard in early trading, up 4% and 2.25%.
Economist Kallum Pickering at Peel Hunt said: "Short of any actual developments – US tariffs are not due to take effect until 1 February and Europe is still considering its response – the initial reaction by financial markets is modest, albeit directionally telling.
"Gold, silver and government bonds are up, while equities and the dollar are lower; all consistent with a risk-off move focused on the potential risks to the US."
US stock and bond markets are closed today for Martin Luther King Jr Day, though futures are trading.