The gold price marked new highs in Asian trading after US President Donald Trump announced new tariffs against eight European countries. Silver also reached a record high.
The gold price reached new all-time highs in Asian trading on Monday, temporarily approaching the 4,700 US dollar per ounce mark. The trigger for the latest movement was once again a mixture of geopolitical uncertainty and expectations of falling US interest rates. The market received additional tailwind after US President Donald Trump threatened new tariffs against eight European countries – in connection with his initiative that the US should acquire Greenland.
In parallel, silver also continued its strong run: The price jumped by more than four percent and climbed to another record level of around 94 US dollars per ounce. Silver is currently benefiting not only from its status as a precious metal, but also from its industrial importance.
Gold price on record course in Asian trade
At the start of the week, the gold price continued the strong rally of the past few days. The precious metal had already set several record marks in succession in the previous week. Market observers attribute the dynamic primarily to robust demand for hedging: In phases of increasing political risks, investors often seek refuge in assets that are considered stable in value.
At the start of the new week, this demand remained high – also because, from the perspective of many market participants, the geopolitical situation is not only generating short-term fluctuations, but is increasingly being perceived as a structural risk factor. Accordingly, a further impulse from international politics was enough to extend the upward trend in the gold price.
Tariff threats in the Greenland dispute increase nervousness
Specifically, Trump declared on Sunday that he would impose new tariffs on goods from eight European countries that reject his plan to acquire Greenland. According to his statements, an initial tariff rate of 10% is to apply from February 1; from June, it is to rise to 25% if no agreement is reached by then. According to the report, the countries affected include France, Germany and the United Kingdom, as well as several Nordic and Northern European countries. The announcement met with clear criticism in Europe and fueled concerns about a broader transatlantic trade conflict.
For the commodity market, the combination of geopolitical dispute and trade policy escalation is relevant in several respects. Firstly, hedging demand typically increases in such phases, which benefits the gold price as a classic “safe haven metal”. Secondly, tariffs and countermeasures can influence expectations of growth, supply chains and inflation – factors that in turn affect the interest rate and currency debate. In the current situation, it was primarily the immediate risk impulse that drove investors into precious metals.
Silver at record high: Interest rate fantasies and industrial role amplify the fluctuations
The reaction was even more pronounced for silver. The silver price rose by more than four percent and reached a new record high of around 94 US dollars per ounce. Unlike gold, silver is not only regarded as a store of value, but is also an industrial metal. This “dual function” can amplify price movements – both upwards and downwards – because investment flows and industrial expectations overlap.
In addition, the environment remains shaped by monetary policy. The report points out that the gold price in recent weeks has also been supported by the expectation that the US Federal Reserve could begin cutting interest rates in the course of the year. Weaker US economic data and signs of easing inflation have supported these speculations. Falling interest rates generally reduce the opportunity costs of holding investments without ongoing interest – a factor that can benefit both gold and silver.
Finally, tensions in the Middle East also played a role, according to the report. Gold had risen in the previous week, among other things, in the wake of renewed concerns about developments in the region, including tensions related to Iran. In summary, this creates a market environment in which the gold price and silver alike benefit from risk aversion and monetary policy fantasies – and in which political headlines continue to play a key role in determining the short-term direction.
The positive development of precious metal prices is naturally not passing by the commodity companies – many companies – including explorers – have already increased noticeably. In our view, gold project developers are moving particularly into focus in this environment. In our view, a particularly exciting example is the Canadian First Mining Gold:
Gold Boom 2026: First Mining perfectly positioned with two top projects!
