Gold prices surged to fresh all-time highs on Monday, nearing the $4,700 per ounce level, as investors rushed into safe-haven assets following new tariff threats from Donald Trump linked to Greenland.
By 11:50 ET (16:50 GMT), spot gold was up 1.7% at $4,673.30 an ounce, after touching a session record of $4,690.75. U.S. gold futures climbed 1.8% to $4,677.81, having earlier reached a peak of $4,697.71.
Gold Rally Fueled by Greenland Tensions and Rate-Cut Hopes
Gold extended last week’s rally after Trump announced over the weekend that the United States plans to impose new tariffs on eight European countries opposing Washington’s attempt to acquire Greenland.
The proposed measures include a 10% tariff starting February 1, with the rate set to rise to 25% in June if no agreement is reached. Countries named include France, Germany, the United Kingdom, along with several Nordic and northern European nations.
The announcement drew sharp criticism from European officials and reignited fears of a wider transatlantic trade conflict, driving investors toward precious metals.
Analysts at ING said renewed tariff tensions are likely to pressure risk assets, while strengthening the outlook for gold and silver as demand for safety intensifies.
Gold has also been supported by growing expectations that the Federal Reserve will begin cutting interest rates later this year. Softer U.S. economic data and easing inflation have reinforced these expectations, reducing the opportunity cost of holding non-yielding assets such as gold.
Silver, Platinum Extend Gains
Silver prices jumped more than 5%, reaching a new record high of $94.35 per ounce. The metal continues to benefit from both safe-haven flows and its role as a key industrial input.
Monte Safieddine, head of EMEA research at Capital.com, said precious metals markets remain heavily driven by headlines and momentum. He warned that silver’s rapid rise has increased volatility, making sharp moves in either direction possible.
Safieddine also noted that retail positioning pushed silver sentiment into extreme bullish territory, with long exposure peaking above 80%, before profit-taking emerged following the record highs.
Platinum also rallied strongly, gaining 2.1% to $2,372.40 an ounce, supported by rising investor interest in physical assets.
Copper Rises on Strong China Growth Data
Among industrial metals, copper prices advanced after data showed that China’s economy met its 5% growth target for 2025, underscoring resilience in the world’s largest copper consumer.
Benchmark copper futures on the London Metal Exchange rose 0.8% to $12,898 per ton. Copper has benefited from broader demand for physical assets and expectations that global data center expansion will drive long-term consumption.
Economic data showed China’s GDP slightly exceeded expectations in the fourth quarter, boosting confidence in global copper demand. While exports remained the primary growth driver, weak domestic spending renewed expectations of additional stimulus from Beijing.
Markets are now watching the People’s Bank of China, which is set to announce its next key lending decision on Tuesday.
