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Gold and silver reach record highs as safe-haven buyers buy after Trump EU tariffs warning

Gold and silver reached record highs Monday due to a flight for safety following a warning from U.S. president Donald Trump about?extra tariffs against some European countries over a dispute regarding Greenland.

Gold spot jumped by 1.6%, to $4,669.09 an ounce, at 0949 GMT. It had previously reached a high of $4689.39.

U.S. Gold Futures for February Delivery increased 1.7% to $4674.10 an ounce.

Trump threatened European allies on Saturday with escalating trade tariffs if the U.S. was not allowed to purchase Greenland. This escalated a dispute over Denmark's vast Arctic Island.

Linh Tran is a senior analyst at XS.com. She said that when institutional and policy risks resurfaced, the markets would tend to move quickly towards safe-haven investments, with gold emerging once again as a preferred choice.

The dollar and stock markets fell after 'Trump's' latest tariff threats sparked investors' appetites for gold, Japanese yen, and 'Swiss Franc' as safe-havens, in an overall 'risk-averse' move across the markets.

Gold is more likely to perform well in times of geopolitical or economic uncertainty as well as when interest rates are low. It has gained over 64% since 2025 and more than 8% in the first half of this year.

Michelle Bowman, Vice Chair of the Federal Reserve for Supervision, said that a fragile?job market could weaken rapidly and that the U.S. Central Bank should be prepared to cut rates again in case it is needed.

The markets expect the Fed to hold rates at its meeting on January 27-28, but they are pricing in a minimum of?two 25 basis points rate cuts this year.

Silver spot also rose 3.5%, to $93.17 after reaching a record high at $94.08. The white metal has increased by over 30% this year.

Analysts at JP Morgan said they prefer gold to silver. They said that any disruption in silver could have some short-term spillover into gold. However, buying gold, which has a bullish structural story and a cleaner price structure, is still a good opportunity.

Palladium and platinum both rose in price, with palladium rising 0.4%, to $1,806.70.

(source: Reuters)