LONDON − Gold and silver prices hit record highs, and stock markets slid yesterday as investors sought safety after US president Donald Trump threatened fresh tariffs over opposition to his Greenland ambitions. 

European countries, including Denmark, of which Greenland is an autonomous territory, said they “stand united” against Trump’s vow on Saturday to impose tariffs of up to 25% on them unless Greenland is ceded to the United States.

“Gold surged to a record high and stocks wobbled as fresh worries about Greenland surfaced,” noted Neil Wilson, investor strategist at Saxo UK.

Gold has broken record after record in recent months as the precious commodity, along with sister metal silver, benefits from safe-haven status.

The latest market unrest followed Trump’s threats against Iran last week and the recent US ouster of Venezuelan president Nicolas Maduro, which triggered volatility in the oil market.

Gold hit a peak of US$4 690.59 an ounce on Monday, while silver struck an all-time high of US$94.12 an ounce.

The Frankfurt and Paris stock markets retreated around 1.5% in late morning trading, while London shed around 0.6%.

The dollar fell against its main rivals, including the yen.

Wall Street was shut for Martin Luther King Day.

Japanese prime minister Sanae Takaichi said she would dissolve parliament this week ahead of a snap election on 8 February, hoping for a stronger mandate to push through her ambitious policy agenda.

Reacting to Trump’s latest move over tariffs, UK prime minister Keir Starmer said a “trade war is in no one’s interest.”

“The use of tariffs against allies is completely wrong,” Starmer told a hastily arranged press conference on Monday.

In the stock market, the luxury and automotive sectors were hit hard by Trump’s threats, with the share prices of LVMH and BMW each down 4.0%.

However, defence stocks climbed, with Germany’s Rheinmetall up 2.8% and Britain’s BAE Systems gaining 1.8%.

The IMF on Monday upgraded its 2026 global growth forecast, citing a boost from tech investments but warning that a re-evaluation of AI productivity gains or renewed trade tensions could bring disruptions.

World economic growth is projected to hold steady at 3.3% this year, the International Monetary Fund said, raising its forecast by 0.2 percentage points from October.

This would match the growth pace in 2025. China’s economy grew at one of the slowest rates in decades last year, official data revealed Monday, as authorities struggled to overcome low consumer spending and a debt crisis in the property sector.
Chinese stocks closed mixed at the start of the new trading week. – Nampa/AFP