Gold jumped past $4,700 per ounce for the first time today, while silver traded near a record high, as US President Donald Trump's threats to slap extra tariffs on European allies soured global sentiment and sparked a rush into safe-haven assets.
Spot gold gained 1% to $4,717.03 per ounce this morning, having hit an all-time high of $4,721.91 earlier. US gold futures for February delivery climbed 2.8% to $4,722.70 per ounce.
Spot silver fell 0.5% to $94.23 an ounce, after hitting a record high of $94.72 earlier this morning.
Trump has intensified his push to wrest sovereignty over Greenland from fellow NATO member Denmark, prompting the European Union to weigh hitting back with its own measures.
"Trump's 'disruptive' policy approach to international affairs and desire to see lower interest rates suit precious metals very well, as reflected by gold and silver's rampant run," said Tim Waterer, KCM Trade's chief market analyst.
"Trump's second term thus far has been a boon for precious metals, with his unconventional approach to politics playing into the hands of gold and silver," he said.
Gold prices have rallied more than 70% since Trump began his second term a year ago, while silver has catapulted more than 200%.
Kelvin Wong, a senior market analyst at OANDA, said gold also found support as the dollar weakened, while there is still a possibility the European Union will issue non-tariff measures where European sovereign funds could to use the opportunity to offload US-based assets.
The dollar retreated to its lowest level in a week as tariff threats triggered a broad selloff across US stocks and government bonds.
Investors flocked to safe havens like gold and the Swiss franc as they fear a return to the volatility of 2025's trade war, which only eased when the sides reached tariff deals in the middle of the year.
EU leaders will convene in Brussels on Thursday for an emergency summit.
"Precious metals are expected to remain the clearest expression of the prevailing defensive mood in markets until a negotiation path become clearer," said Ahmad Assiri, research strategist at Pepperstone.
Among other precious metals, spot platinum rose 0.6% to $2,387.55 an ounce, while palladium added 0.2% to $1,845.75.
