Gold hits record high following new Trump tariff threat

GOLD AND SILVER prices have hit record highs and stock markets slid this morning as investors sought safety after US President Donald Trump threatened fresh tariffs over opposition to his Greenland ambitions.

European countries including Denmark, of which Greenland is an autonomous territory, said they “stand united” against Trump’s vow on Saturday to hit them with tariffs of up to 25% unless Greenland is ceded to the United States.

Kate English, chief economist at Deloitte Ireland, told RTÉ that the volatility seen in 2025 could be “worse” in 2026.

She said the last few days have “not been good for international trade, for our own economy, and for the European economy”.

She noted that a “rise in concern or nervousness” has been seen in the gold market.

Gold has broken record after record in recent months as the precious commodity, along with sister metal silver, benefits from safe-haven status.

English remarked that during periods of volatility, investors seek a “safe haven – somewhere they can put their money where they believe it will still hold value once that time of uncertainty goes by”.

While English acknowledged that “today is worrying”, she called on the public “not to get too panicked or worried yet”.

“We have seen a lot of resilience in our own economy last year,” added English.

The latest market unrest followed Trump’s threats against Iran last week and the recent US ouster of Venezuelan president Nicolas Maduro which triggered volatility in the oil market.

Gold has hit a peak of $4,690.59 an ounce, while silver struck an all-time high of $94.12 an ounce.

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The Frankfurt and Paris stock markets retreated around 1.5% in late morning deals, as London shed around 0.6%.

The dollar fell against main rivals, including the yen.

Wall Street was shut for Martin Luther King Day.

Reacting to Trump’s latest move over tariffs, UK Prime Minister Keir Starmer said a “trade war is in no one’s interest”.

“The use of tariffs against allies is completely wrong,” Starmer told a hastily-arranged press conference today.

In stocks trading, the luxury and auto sectors were hit hard by Trump’s threats, with the share prices of LVMH and BMW each down 4.0%.

However, defence stocks climbed, with Germany’s Rheinmetall up 2.8 % and Britain’s BAE Systems gaining 1.8%.

The IMF today upgraded its 2026 global growth forecast, citing a boost from tech investments but warning that a re-evaluation of AI productivity gains or renewed trade tensions could bring disruptions.

World economic growth is projected to hold steady at 3.3% this year, the International Monetary Fund said, raising its forecast by 0.2 percentage points from October.

This would match the pace of growth in 2025.

China’s economy grew at one of the slowest rates in decades last year, official data revealed today, as authorities struggled to overcome low consumer spending and a debt crisis in the property sector.

Chinese stocks closed mixed at the start of the new trading week.

-With additional reporting from © AFP 2026 

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