Gold prices surged to new all-time highs in Asian trading on Monday, pushing close to $4,700 an ounce, as investors piled into defensive assets following U.S. President Donald Trump’s threat to impose fresh tariffs on several European countries over his push to gain control of Greenland.
Spot gold rose 1.6% to $4,667.33 an ounce by 02:26 ET (07:26 GMT), after earlier touching a record intraday high of $4,690.75. U.S. gold futures also set a new peak at $4,697.71 an ounce.
Tariff tensions and Fed rate outlook underpin rally
Gold extended last week’s strong advance after Trump said over the weekend that the United States would introduce new tariffs on eight European nations that have opposed Washington’s Greenland proposal.
Under the plan, a 10% tariff would be imposed from 1 February on goods from the affected countries, with the rate rising to 25% in June if no agreement is reached. The countries named include France, Germany and the United Kingdom, along with several Nordic and northern European states.
The announcement drew swift criticism from European officials and reignited fears of a wider transatlantic trade confrontation, prompting investors to seek safety in precious metals.
The geopolitical backdrop has added to a supportive environment for gold, which has already benefited in recent weeks from growing expectations that the Federal Reserve will begin cutting interest rates later this year. Softer U.S. economic data and signs that inflation pressures are easing have reinforced bets on policy easing, lowering the opportunity cost of holding non-yielding assets such as gold.
Silver prices also surged, rising more than 4% to a fresh record high of $94.03 an ounce, buoyed by both safe-haven demand and its importance in industrial uses.
Platinum joined the rally, climbing over 1% to $2,358.69 an ounce, supported by increasing investor interest in physical commodities.
Copper advances on resilient China growth
In the industrial metals space, copper prices moved higher after data showed China’s economy met Beijing’s 5% growth target for 2025, easing concerns about demand from the world’s largest copper consumer.
Benchmark copper futures on the London Metal Exchange gained 0.6% to $12,881.0 a tonne. Copper has also been lifted by the broader rally in physical assets seen toward the end of 2025, as investors position for stronger long-term demand linked to expanding global investment in data centres.
Chinese figures showed that GDP growth in the December quarter came in slightly above expectations, reinforcing confidence in the economy’s resilience — a constructive signal for global copper demand.
However, the data also highlighted an uneven recovery, with exports remaining the primary growth driver while business investment and household spending lagged. This imbalance has kept hopes alive for further stimulus from Beijing, with the People’s Bank of China set to announce a key lending rate decision on Tuesday.
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