Gold and silver soar to record highs amid Trump tariff threat

Gold and silver prices have jumped to record highs as the markets react to Donald Trump’s threat of additional tariffs over Greenland.

European stock markets fell on Monday as investors turned to safe-haven assets amid the turbulent geopolitical landscape. Meanwhile, gold rose 1.6 per cent to $4,666 (£3,481.14) an ounce after reaching a peak at $4,689 (£3,498.30). Silver also reached a record high of $94.08 (£70.19) an ounce before falling back down to $93.15 (£69.50).

It comes after the US president threatened additional tariffs on eight European countries as his attempts to claim Greenland intensify. On Saturday, Mr Trump said he could impose 10 per cent tariffs on Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland until the US is allowed to buy the Danish territory.

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Stock markets across Europe fell upon opening on Monday morning as investors reacted to the threats. In France, the Cac 40 fell 1.6 per cent, Germany’s Dax was down 1.4 per cent, and Spain’s Ibex also fell by nearly 1 per cent.

US markets remain closed for Martin Luther King Jr Day, but American stocks listed in Europe also fell. Nvidia and Microsoft were both down 2.2 per cent, while shares in Google owner Alphabet fell 2.4 per cent.

On Saturday, Mr Trump said 10 per cent tariffs would come into effect on 1 February, and would increase to 25 per cent on 1 June.

“Greenland is very important for the national security, including of Denmark,” he said last week. “And the problem is there’s not a thing that Denmark can do about it if Russia or China wants to occupy Greenland, but there’s everything we can do. You found that out last week with Venezuela.”

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Targeted European countries retaliated in a joint statement, warning of a “dangerous downward spiral” should Mr Trump get his wishes.

Speaking on Monday morning, Sir Keir Starmer slammed Mr Trump’s threats as “completely wrong” as he issued a plea for calm.

The European Union is now also preparing to land the US with hefty retaliatory tariffs worth €93bn ($107.71bn or around £80bn), according to the Financial Times. The bloc is also considering restricting US companies from its market.

In the joint statement, the eight countries made clear their “full solidarity with the Kingdom of Denmark and the people of Greenland”.