Gold and silver rose to record highs, days after breaking previous records, as investors flocked to safe-haven assets amid geopolitical and economic uncertainty.
USA February gold futures The supply rose 1.71% on Monday to $4,674.20 an ounce after hitting a record high last week. Spot gold increased by 1.6% and amounted to $4,668.14.
This comes after US President Donald Trump announced tariffs for goods Before the agreement on the “full and complete purchase of Greenland” from eight European countries, he intensified his rhetoric about the annexation of the Arctic island.
“Gold’s rally has been strong, but it’s based on fundamentals that are still in place. With real rates likely to come down and central banks continuing to diversify their holdings, we see a reason for gold to rally rather than consolidate or sell off,” said George Cheveley, natural resources portfolio manager at Ninety One.
At current prices, margins are expected to be four to five times higher than in 2024.
Silver has tracked gold’s rise and looks comfortable at such prices. USA silver futures for March rose to a record high of $93.035 an ounce and was last up 5.06% at $93.02. Spot price of silver It was 3.55% higher to $93.16 per ounce.
Gold and silver do well in times of heightened uncertainty, as riskier assets such as stocks tend to fall out of favor.
The tariffs on Greenland follow the January 3 US arrest of Venezuela’s president and seizure of the country’s oil industry; and Trump said a military strike against Iran was imminent amid the country’s crackdown on civil unrest, only to appear to back off the threat last week.
European and Asia-Pacific markets were mostly lower on Monday as investors weighed geopolitical risks. Shares of Europe’s biggest carmakers and luxury goods majors fell on Monday morning as investors digested possible tariffs on European countries. Trump has said it will be 10% starting February 1st, rising to 25% starting June 1st if no deal is reached. The Stoxx Europe 600 Automobiles & Parts Index was down 2.2% in early trade, while the Stoxx Europe Luxury 10 Index was down 2.9%.
European countries It was reported that the response tariffs are being considered and broader economic countermeasures.
The Justice Department’s criminal investigation into Federal Reserve Chairman Jerome Powell could also roil markets as investors assess the long-term impact of Trump’s war of words aimed at pressuring him. low interest rates.
Meanwhile, the conflict in Ukraine is still ongoing Progress in Gaza expected to last for years.
Other base metals also rose, but were driven by megatrends rather than geopolitics. According to Cheveley, copper has an “attractive” risk-reward profile, particularly due to energy and data center infrastructure demand.
USA March copper futures was last up 0.54% at $5.8625 an ounce, up from a Jan. 6 high.