Why Did Gold & Silver Suddenly Explode?
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors into safe havens, leading to a sharp increase in demand for precious metals.
Trump said the initial 10% tariff would take effect on February 1, 2026, and then rise to 25% in June 2026. This threat sparked fears of retaliation from Europe, which could escalate into a full-blown trade war—a situation such as this typically increases demand for gold and silver.
European leaders are reportedly set to hold an emergency meeting in the coming days to discuss retaliatory measures. Several options are reportedly being considered, including plans for retaliatory tariffs on tens of billions of euros worth of US goods.
France is also said to be potentially pushing for the use of the "anti-coercion instrument," the most powerful retaliatory instrument the European Union has. If this is actually activated, trade tensions could escalate, and markets could become more aggressive in seeking refuge in safe haven assets.
In terms of prices, spot gold rose around 1.7% to $4,676 per ounce and briefly reached a peak of $4,690. Silver surged around 3.9% to $93.63 and briefly touched $94.12. Platinum and palladium also strengthened, while the dollar weakened slightly.
Going forward, the market will focus on two things: whether Europe will retaliate aggressively, and whether US political pressure regarding Greenland will be further intensified. As long as this uncertainty remains high, gold and silver have the potential to remain investors' "favorite havens."
5 Key Points:
- Trump's tariff threats against European countries have triggered a surge in safe-haven demand for gold and silver.
- Tariffs of 10% starting February 1, 2026, potentially rising to 25% in June 2026.
- Europe is preparing an emergency meeting and the option of retaliatory tariffs on US goods.
- France has the potential to push for the activation of the European Union's "anti-coercion instrument."
- Latest prices: gold around $4,676/oz (high $4,690) and silver around $93.63/oz (high $94.12). (asd)
Source: Newsmaker.id
