Gold prices reached record highs during Asian trading on January 19 and approached $4,700 an ounce as investors sought safe havens after US President Donald Trump threatened new tariffs on several European countries over their opposition to his plan to acquire Greenland.
At 02:31 Moscow time, spot gold rose 1.8% to $4,675.55 an ounce, having earlier hit an intraday record of $4,690.75. US gold futures gained 1.9% to $4,681.10 an ounce.
The metal extended last week’s rally, during which gold set multiple consecutive records amid growing expectations of US interest rate cuts and heightened geopolitical risk.
Silver also climbed more than 4% to a fresh record of $94.03 an ounce. Demand for safe havens and silver’s role as an industrial metal underpinned the move.
On January 18, Mr. Trump said the United States would impose new tariffs on eight European countries that opposed his Greenland purchase plan. A 10% tariff will take effect on February 1 and may rise to 25% in June if no deal is reached.
France, Germany, and the United Kingdom were among the countries named as potential targets, along with several states in Northern Europe and Scandinavia.
The announcement drew sharp reactions from European officials and rekindled concerns about an expanding transatlantic trade dispute, making investors buy precious metals.
Tariff threats added to an already favorable backdrop for gold. Markets have priced in an increasing chance that the Federal Reserve will begin easing monetary policy later this year. Weak US economic data and signs of slowing inflation strengthened the case for rate cuts, lowering the opportunity cost of holding non‑yielding assets such as gold.
Geopolitical tensions, including renewed worries over the situation in the Middle East and developments related to Iran, provided further support to the precious metals market.
