Gold Hits Record Highs as Stocks Slide on Trump Tariff Threat

AFP/APP

London: Gold and silver prices surged to record highs on Monday while global stock markets slipped, as investors sought safe-haven assets following US President Donald Trump’s threat of fresh tariffs over opposition to his Greenland ambitions.

European nations, including Denmark—of which Greenland is an autonomous territory—said they “stand united” against Trump’s vow to impose tariffs of up to 25 percent unless Greenland is ceded to the United States.

“Gold surged to a record high and stocks wobbled as fresh worries about Greenland surfaced,” said Neil Wilson, investor strategist at Saxo UK.

Gold and silver have been hitting record after record in recent months, benefiting from their safe-haven status amid geopolitical and economic tensions. The latest market unrest follows Trump’s recent threats against Iran and the ouster of Venezuelan President Nicolas Maduro, which had already triggered volatility in oil markets.

Gold: peaked at $4,690.59 per ounce

Silver: reached an all-time high of $94.12 per ounce

European stock markets retreated, with Frankfurt and Paris down around 1.5 percent in late morning trades, and London shedding 0.6 percent. The US dollar fell against major rivals, including the yen. Wall Street was closed for Martin Luther King Day.

Japanese Prime Minister Sanae Takaichi announced she will dissolve parliament ahead of a snap election on February 8 to secure a stronger mandate for her policy agenda.

Read More: https://thepenpk.com/trump-threatens-european-tariffs-over-greenland/

Reacting to Trump’s tariff threats, UK Prime Minister Keir Starmer said a “trade war is in no one’s interest” and described tariffs against allies as “completely wrong.”

In stock trading, luxury and auto sectors were hit hardest:

LVMH: down 4.0%

BMW: down 4.0%

Meanwhile, defense stocks climbed:

Rheinmetall (Germany): up 2.8%

BAE Systems (UK): up 1.8%

The IMF upgraded its 2026 global growth forecast, citing tech investment as a boost, but warned that AI productivity reevaluations or renewed trade tensions could cause disruptions. World economic growth is projected to hold steady at 3.3%, matching 2025 levels.

China’s economy grew at one of its slowest rates in decades last year, as low consumer spending and a debt crisis in the property sector weighed on growth. Chinese stocks closed mixed at the start of the new trading week.

Key Market Figures (Approx. 1045 GMT)

Market Change Level

London – FTSE 100 Down 0.6% 10,174.60 points

Frankfurt – DAX Down 1.4% 24,942.07

Paris – CAC 40 Down 1.6% 8,130.12

Tokyo – Nikkei 225 Down 0.7% (close) 53,583.57

Hong Kong – Hang Seng Down 1.1% (close) 26,563.90

New York – Dow Down 0.2% (close) 49,359.33

Shanghai – Composite Up 0.3% (close) 4,114.00

Currency Movements:

Euro/USD: $1.1624 (up from $1.1604)

GBP/USD: $1.3410 (up from $1.3382)

USD/JPY: 157.85 yen (down from 158.07)

Euro/GBP: 86.72 pence (up from 86.69)

Oil Prices:

Brent North Sea Crude: $63.76 per barrel (down 0.6%)

West Texas Intermediate: $59.02 per barrel (down 0.5%)