Small wonder, then, that gold and silver prices have skyrocketed to historic highs. This increase comes in the wake of President Donald Trump’s threat to retaliation tariffs on eight European countries. In UK pounds, the price of gold soared, hitting £3,499 an ounce. Silver had a tremendous rise too, hitting a high of $94.08 per ounce. As global tensions and economic uncertainty increase, investors are panicking and running towards safer assets, resulting in a precious metals spike.
In the past year, gold prices have more than doubled, with new all-time record highs. The recent tariff threats have increased these existing fears, including overall U.S.-China trade relations and global geopolitical stability. This means that with global tensions high, gold and silver are being seen more and more as safe havens for investment.
The U.S.-EU relationship may brace for even more impact as the market quickly armed itself in response to Trump announcing potential tariffs. The European Union is preparing its own response to counteract these moves. Yet this latest move further complicates the picture. This has led to fluctuations in various stock indices. Japan’s Nikkei index closed down 0.6%, while London’s FTSE 100 index experienced a more modest decline of 0.1%. Germany’s Dax index fell by 1%. Major automakers such as BMW, Mercedes-Benz, and Volkswagen were hit the hardest.
The upward move in precious metal prices has been a boon for shares of gold mining stocks as well. Both Fresnillo and Endeavour were among the biggest percentage gainers of the market today as investors cheered the everyday rise of gold and silver.
“Gold has hit fresh record highs on its glittering run upwards,” – Susannah Streeter, chief investment strategist at Wealth Club.
Streeter highlighted that “the precious metal is holding even more allure as a safe haven as worries spread about the repercussions of the US aggressive trade and geopolitical policies.” This view highlights the fundamental trend behind the changing investor attitude towards gold and silver prices against a fragile macroeconomic landscape.