Gold and silver prices in international markets soared to record highs on Monday. Investors rushed to buy these precious metals as safe-haven assets. This buying spree happened because global trade and tariffs tensions intensified recently.
What Drove the Rally in Gold and Silver?
The surge in gold and silver prices followed a statement from US President Donald Trump. He threatened to impose extra tariffs on European countries. Trump made this threat until the United States is allowed to purchase Greenland. This announcement heightened fears about a trade war, pushing investors toward gold and silver.
Gold Prices Reach New Peaks
Spot gold price gained 1.6 percent on Monday. It reached $4,670.01 per ounce. Earlier in the day, gold scaled an all-time high of $4,689.39 per ounce. US gold futures for February delivery performed even better. They jumped 1.8 percent to $4,677 per ounce.
Silver Prices Spike Sharply
Spot silver price spiked 4.4 percent to $93.85 per ounce. Silver also hit a record high of $94.08 per ounce during the trading session. This sharp increase shows strong investor interest in silver as a safe-haven asset alongside gold.
Dollar Weakness Supports Precious Metals
Meanwhile, the US dollar fell against other major currencies. This decline supported gold and silver prices further. The dollar index, which measures the greenback's strength, fell 0.19 percent to 99.18. A weaker dollar makes gold and silver cheaper for holders of other currencies, boosting demand.
Markets remain on edge due to ongoing trade disputes. Investors are closely watching for any new developments. The rally in gold and silver highlights the current risk-off sentiment in global markets.
