Gold and silver prices climbed to fresh record highs as investors moved into safe-haven assets following renewed trade-war concerns linked to comments by US President Donald Trump regarding Greenland and potential tariffs on European countries.
Trump warned that the US could impose new tariffs on several European nations, including France, Germany and the UK, over opposition to his push for the US to acquire or exert control over Greenland.
The proposed measures include a 10% tariff on certain European imports starting in early February, with the possibility of rising to 25% by mid-year if no agreement is reached.
This caused gold to reach a record US$4,689 per ounce on Monday, surpassing previous all-time highs as investors sought assets traditionally viewed as stores of value during periods of uncertainty.
Silver outperformed gold in percentage terms, up almost 6% to trade just below US$94. The gold-silver ratio has declined sharply compared with last year, indicating stronger relative gains for silver.
European leaders are reported to be discussing potential responses to the proposed US tariffs, including retaliatory levies on approximately €93 billion (US$108 billion) worth of US goods, according to people familiar with the discussions.
The proposed US tariffs are scheduled to take effect on February 1, with an increase to 25% planned for June if negotiations do not produce a resolution.