Gold prices rose more than 1% on Monday, climbing to a fresh all-time high above $4,660 per ounce, as investors flocked to safe-haven assets following U.S. President Donald Trump’s announcement of new tariffs targeting several European countries.
Trump said on Saturday that the United States would impose a 10% tariff on goods from eight European nations starting February 1, citing their opposition to American control over Greenland. He warned that the tariff rate could increase to 25% by June 1 if no agreement is reached on what he described as the “complete and total purchase of Greenland” by the U.S.
The announcement rattled global markets and sparked concern across Europe, with regional leaders expected to hold emergency talks in the coming days to discuss potential retaliatory measures. The escalation in trade tensions added to broader geopolitical uncertainty, pushing investors toward gold and other defensive assets.
Bullion has already been on a strong upward trajectory this year, building on an impressive performance in 2025. Prices have been supported by heightened geopolitical risks, political instability in Venezuela, renewed concerns over the Federal Reserve’s independence, and growing expectations of further U.S. interest-rate cuts. Together, these factors have reinforced gold’s appeal as a store of value during periods of economic and political stress.
Frequently Asked Questions
Why did gold prices hit a record high above $4,660?
Gold surged as investors rushed into safe-haven assets after U.S. President Donald Trump announced new tariffs on several European countries, raising fears of a renewed trade conflict and broader geopolitical instability.
How do U.S. tariffs on Europe impact gold prices?
Tariffs increase uncertainty around global trade, economic growth, and inflation. During such periods, investors typically shift funds away from riskier assets and into gold, which is seen as a store of value.
What role does the Greenland dispute play in market sentiment?
Trump linked the tariffs to Europe’s opposition to U.S. control over Greenland, an unusual geopolitical demand that intensified uncertainty. The unconventional nature of the dispute heightened market anxiety and boosted safe-haven demand.
Are interest rate expectations supporting gold?
Yes. Expectations of further U.S. interest-rate cuts and concerns over the Federal Reserve’s independence have lowered real yields, making non-yielding assets like gold more attractive.
Could gold prices continue rising from here?
Gold could remain supported if trade tensions escalate, geopolitical risks persist, or rate-cut expectations strengthen. However, short-term pullbacks are possible if tensions ease or profit-taking emerges after the sharp rally.
