Gold Price Hits Record High Above $4,600 as Trump Tariff Threats Roil Markets
The precious metal rallied past $4,680 an ounce as investors fled to safe-haven assets amid escalating trade tensions between the US and Europe.
Gold prices surged to a new all-time high on Monday, climbing over 1% as investors sought shelter from a brewing trade storm. The precious metal touched approximately $4,690 per ounce in overnight trading, a direct response to President Trump's threat to impose fresh tariffs on Europe, which sent a chill through global equity markets.
The rally was triggered by reports that the White House is planning to levy a 10% tariff on goods from eight European nations. This move is reportedly linked to stalled negotiations over the potential US acquisition of Greenland. The threat of a new front in the global trade war sparked an immediate flight to safety, with gold being the primary beneficiary.
Global markets reacted swiftly to the news. European stock futures, including the EUROSTOXX 50 and Germany's DAX, fell between 1.1% and 1.5%. The risk-off sentiment extended across the globe, with Japan's Nikkei index dropping 1% and US stock futures pointing to a lower open, as detailed in live market coverage.
This move towards bullion underscores gold's traditional role as a haven in times of economic and geopolitical turmoil. As investors divest from riskier assets like stocks, the demand for gold, which is perceived as a reliable store of value, naturally increases.
European leaders have responded with alarm. One official warned of a potential "downward spiral" in transatlantic relations, fearing that the tariffs could trigger a damaging cycle of retaliation. Reports suggest the EU is considering activating its 'trade bazooka,' or Anti-Coercion Instrument, which would involve imposing its own tariffs on US goods, as noted by European policy analysts.
Analysts see the potential for further gains if the geopolitical climate remains fraught. "The path of least resistance is higher for gold as long as the market is gripped by this level of uncertainty," one strategist noted. Some market forecasts are already eyeing the $4,700 level as the next psychological milestone for the commodity. The market's direction in the coming days will likely depend on the diplomatic response from Brussels and whether the Trump administration follows through on its tariff threat.