Gold and Silver Prices Soar Amidst New Tariff Threats

Gold and silver prices have hit record highs following the threat by US President Donald Trump to impose fresh tariffs on eight European countries opposed to his proposed takeover of Greenland. The price of gold touched $4,689.39 (£3,499) an ounce on Monday, while silver rose to a peak of $94.08 an ounce. Precious metals are seen as safer assets to hold in times of uncertainty, and the prices of both gold and silver have soared over the past year. The row over the future of Greenland has escalated following the threat of extra tariffs by the US and there are reports that the EU is preparing to retaliate. While gold and silver prices rose, stock markets in Asia saw modest falls with Japan's Nikkei index closing down 0.6%. In Europe, London's FTSE 100 index opened down 0.1% but there were bigger falls elsewhere with Germany's Dax index dropping 1.4% and France's Cac 40 sliding 1.5%. Markets in the US are closed on Monday for a public holiday. On Saturday, Trump announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would come into force on 1 February, but could later rise to 25% - and would last until a deal on Greenland was reached. Reports have suggested the EU is considering responding with a €93bn (£80bn) package of tariffs on US imports. Last year, the price of gold soared by more than 60%, partly due to concerns about global tensions and economic uncertainty. "Geopolitical tensions have given gold bulls yet another reason to push the yellow metal to new highs," said StoneX senior analyst Matt Simpson on Monday.