By Forum staff writer
Gold and silver prices surged to record levels on Monday while share prices across Europe fell, as investors reacted nervously to renewed geopolitical tensions linked to trade threats from the United States.
Gold climbed to an all-time high of $4,689.39 an ounce, while silver reached a peak of $94.08 an ounce, underlining growing demand for safe haven assets. The rally reflects heightened uncertainty in global markets following remarks by US President Donald Trump, who warned of fresh tariffs against eight European countries opposing his proposed takeover of Greenland.
Precious metals are traditionally viewed as a store of value during periods of political and economic instability. Over the past year, both gold and silver have posted sharp gains as investors sought protection from risks ranging from geopolitical disputes to concerns over inflation and global growth. Analysts say the latest jump highlights the scale of anxiety gripping financial markets.
In contrast to the rise in metals, European stock markets recorded notable declines. Major indices across the region slipped as investors weighed the potential impact of new trade barriers on economic activity and corporate earnings. Market participants fear that further tariffs could disrupt supply chains, raise costs for businesses and deepen existing trade tensions between the United States and its allies.
The warning from Washington added to an already fragile investor mood. While details of the proposed tariffs remain unclear, the threat alone was enough to trigger a shift away from equities and toward assets perceived as more stable. Traders said uncertainty surrounding US foreign and trade policy continues to inject volatility into global markets.
Currency markets were also cautious, with the US dollar holding steady against major peers as investors assessed the broader implications of the dispute. Bond yields edged lower, reflecting increased demand for government debt as a safer investment option.
Market analysts noted that the surge in silver was particularly striking, given its dual role as both a precious metal and an industrial input. Rising prices suggest not only safe haven demand but also expectations of constrained supply and longer term inflationary pressures.
Despite the strong performance of gold and silver, some economists cautioned that sharp rallies can be followed by periods of correction if tensions ease or if policymakers signal a willingness to negotiate. However, they added that sustained uncertainty could continue to support higher prices in the near term.
For now, investors remain focused on political developments and official responses from European capitals. Any escalation or de-escalation in rhetoric is likely to influence market direction in the coming days.
As global markets navigate another bout of uncertainty, the contrasting movements in precious metals and equities underscore a familiar pattern: when confidence falters, investors seek refuge in assets long regarded as safe.
Source @BBC
