Source: Sharecast
The US president announced over the weekend he planned to impose tariffs on a number of Nato allies, after the countries - including the UK - deployed troops to the North Atlantic island.
The European Union is understood to be a considering a retaliatory response, though on Monday UK prime minister Keir Starmer argued that a trade war was “in no one’s interest”. That did not stop gold and silver assets from soaring, however.
As at 1300 GMT, Comex gold had put on 2% at $4,669.70 per ounce, an all-time high, while silver had surged nearly 5% to hit a record $92.06 an ounce.
Susannah Streeter, chief investment strategist at Wealth Club, said: "[Gold] is holding even more allure as a safe haven as worries spread about the repercussions of the US aggressive trade and geopolitical policies."
David Morrison, senior market analyst at Trade Nation, said: "Precious metals surged this morning as investors rushed for ‘safety’ on the back of renewed trade tensions.
"Gold jumped in early trade to print fresh all-time high just shy of $4,700. The move was driven by a combination of rising geopolitical risk, trade war fears and a pullback in the US dollar.
"Despite reduced expectations for multiple Fed rate cuts later in 2026, gold’s upward momentum remains intact, supported by a broader loss of confidence in other US assets."
On silver, Morrison noted there was "scant evidence buyers are being put off" despite data suggesting the metal was "very over brought".
He continued: "The prevailing view among bulls is that silver is in short supply, while demand from both investors and industry remains strong."
