Gold records a new historic peak, exceeding $4,700 per ounce

Gold jumped beyond the level of $4,700 per ounce for the first time today, while silver traded near a record high level, as US President Donald Trump’s threats to impose additional tariffs on European allies shook global confidence and enhanced the demand for safe haven assets.

Gold rose in instant transactions by one percent to $4,717.03 per ounce by 07:30 GMT, after reaching its highest level ever at $4,721.91 earlier.

US gold futures for February delivery rose 2.8 percent to $4,722.70 an ounce.

Silver in spot transactions fell 0.5 percent to $94.23 an ounce, after hitting a record high of $94.72 earlier in the session.

Trump intensified his efforts to seize sovereignty over Greenland from NATO member Denmark, prompting the European Union to consider responding with its own measures.

Tim Waterer, chief market analyst at KCM Trade, said: “Trump’s ‘confusing’ policy approach to international affairs and his desire to see lower interest rates are serving precious metals very well, which is reflected in the strong rise in gold and silver.”

He added, “Trump’s second term so far has been a supportive push for precious metals, as his unconventional approach to politics is in the interest of gold and silver.”

Gold prices have risen by more than 70 percent since Trump began his second term a year ago, while silver has jumped by more than 200 percent.

Kelvin Wong, chief market analyst at OANDA, said that gold also received support with the decline of the dollar, while there is still the possibility that the European Union will issue non-tariff measures, as European sovereign wealth funds may exploit this opportunity to get rid of existing assets in the United States.

The dollar fell to its lowest levels in a week after threats of tariffs led to widespread selling in US stocks and government bonds.

Investors are turning to safe haven assets such as gold, the yen and the Swiss franc to hedge the risks of the trade war. But they fear the return of volatility caused by the trade war in 2025, which did not subside until agreements were reached on tariffs in the middle of the year.

European Union leaders are scheduled to meet in Brussels on Thursday for an emergency summit. As for other precious metals, platinum rose in spot transactions 0.6 percent to $2,387.55 per ounce, while palladium rose 0.2 percent to $1,845.75.