Gold prices climbed to fresh record levels during Asian trading on Monday, moving close to $4,700 an ounce as investors rushed into safe-haven assets after U.S. President Donald Trump threatened to impose new tariffs on several European countries in connection with his bid to acquire Greenland.
Spot gold gained 1.6% to $4,667.33 an ounce by 02:26 ET (07:26 GMT), having touched an intraday record of $4,690.75 earlier in the session. U.S. gold futures also reached a new high, peaking at $4,697.71 an ounce.
Tariff risks and rate-cut hopes lift gold
Gold extended last week’s strong rally after Trump said over the weekend that the U.S. would introduce fresh tariffs on eight European nations that have opposed Washington’s plan to take control of Greenland.
Under the proposal, a 10% tariff would be imposed from 1 February on goods from the affected countries, with the rate set to rise to 25% in June if no agreement is reached. The list of countries includes France, Germany and the United Kingdom, as well as several Nordic and northern European states.
The announcement drew swift criticism from European officials and reignited fears of a wider transatlantic trade dispute, prompting investors to seek shelter in precious metals.
The tariff threat has added to an already supportive environment for gold. In recent weeks, prices have been underpinned by growing expectations that the Federal Reserve will begin cutting interest rates later this year. Softer U.S. economic data and signs that inflation is cooling have strengthened the case for policy easing, lowering the opportunity cost of holding non-yielding assets such as gold.
Silver prices also rallied sharply, jumping more than 4% to a record high of $94.03 an ounce. The metal has benefited not only from safe-haven flows but also from its importance in industrial applications.
Platinum rose as well, climbing over 1% to $2,358.69 an ounce, supported by rising investor interest in physical assets.
Copper firms after resilient China growth data
Among industrial metals, copper prices moved higher on Monday after data showed that China’s economy met Beijing’s 5% growth target for 2025, easing concerns about demand from the world’s largest copper importer.
Benchmark copper futures on the London Metal Exchange rose 0.6% to $12,881.0 a tonne. Copper has also been swept up in the broader rally in physical assets seen toward the end of 2025, with investors betting that rising global investment in data centres will drive longer-term demand.
Chinese data showed that GDP growth in the December quarter came in slightly above expectations, reinforcing hopes that the economy is proving more resilient than feared — a positive signal for global copper consumption.
However, the figures also highlighted an uneven recovery, with exports remaining the main engine of growth while business investment and household spending lagged. That imbalance has fuelled expectations of further policy support from Beijing, with the People’s Bank of China due to decide on a key lending rate on Tuesday.