**Gold Soars Amid Tariff Tension: Investors Flee to Safety**

On Monday, gold and silver prices surged to record highs as stock markets took a hit, following US President Donald Trump’s announcement of potential new tariffs against eight European countries. Gold reached $4,689.39 (£3,499) per ounce and silver climbed to $94.08 per ounce. Investors resorted to precious metals as safe havens in light of escalating geopolitical tensions surrounding Trump’s controversial proposed takeover of Greenland.

The tariffs—set at 10% initially on imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, with possible increases to 25%—are tied to negotiations over Greenland. The response from the EU could include a €93 billion (£80 billion) retaliatory tariff on US goods. Market analysts noted that last year saw gold prices leap over 60%, driven by global uncertainty and heightened concerns about trade disputes.

Industry experts like Susannah Streeter from Wealth Club emphasized that gold’s allure as a safe asset is increasing due to fears surrounding US trade policies. Conversely, European stock markets stumbled; the FTSE 100 fell by nearly 0.4% with declines in various sectors, including automobiles and luxury goods, whereas shares of gold mining companies rose. The Dax index in Germany dropped 1.3%, with major car brands like BMW and Mercedes-Benz contributing to the decline.

While European defense stocks saw gains, amid a public holiday in the US, analysts expressed concerns over the potential fallout from Trump’s tariffs, particularly if the US Supreme Court rules against him. The International Monetary Fund (IMF) also highlighted trade tensions as significant risks to the global economy, foreshadowing possible downturns in growth if these disputes escalate.