Gold prices surged to a new record today, moving beyond $4,700 per ounce for the first time, as renewed geopolitical tensions unsettled global markets and pushed investors toward traditional safe-haven assets. The rally comes amid fresh threats from US President Donald Trump to impose additional tariffs on European allies, reigniting fears of an escalation in transatlantic trade disputes.
Spot gold rose by around 1% to trade at approximately $4,717 per ounce after briefly touching an intraday high above $4,720. US gold futures also climbed sharply, reflecting heightened demand for protection against political and economic uncertainty. Silver, which had reached a record earlier in the session, eased slightly but continued to trade near historic highs, underlining the broader strength across precious metals.
Market sentiment has been shaken by the US administration’s increasingly confrontational stance toward Europe, particularly in relation to Greenland and wider trade policy. These developments have raised concerns about potential retaliatory measures from the European Union and the risk of renewed disruption to global trade flows.
Analysts note that gold has benefited from several converging factors. Ongoing geopolitical uncertainty has coincided with a weaker US dollar, making dollar-denominated commodities more attractive to international investors. At the same time, expectations that US interest rates could remain under pressure have reduced the opportunity cost of holding non-yielding assets such as gold.
Since the start of President Trump’s second term, gold prices have risen dramatically, with silver showing even stronger gains over the same period. This performance highlights how sensitive precious metals are to political risk and policy uncertainty, particularly when markets perceive a shift away from predictable international cooperation.
The dollar fell to a one-week low as tariff threats triggered a sell-off in US equities and government bonds. This move reinforced demand for alternative stores of value, including gold and the Swiss franc. Investors appear wary of a repeat of the volatility seen during previous trade disputes, which had only stabilised once negotiated agreements were reached.
Attention now turns to an emergency meeting of EU leaders in Brussels, where potential responses to the latest developments will be discussed. Until there is greater clarity on the direction of negotiations, analysts expect defensive positioning to continue dominating market behaviour.
Other precious metals also saw gains. Platinum rose modestly, while palladium edged higher, reflecting a broader shift toward assets perceived as resilient during periods of economic and political stress.
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