Gold prices surge to historic high
Both gold and silver have experienced sharp gains over the past year, with gold rising more than 60% in 2025, as investors turned to these metals as safe-haven assets during periods of economic and geopolitical volatility. Analysts point to mounting global tensions, including the threat by US President Donald Trump to levy new tariffs on European nations resisting his proposal to acquire Greenland, as a major driver of the rally.
Trump announced plans to impose a 10% tariff in February on imports from eight European NATO members, including Denmark, and warned of an increase to 25% by June if an agreement is not reached. The EU has vowed to protect its economic interests with countermeasures, potentially including the revival of a suspended €93 billion retaliatory tariff package and the deployment of the Anti-Coercion Instrument, which can restrict market access, investment, and intellectual property rights.
The International Monetary Fund also cautioned that escalating tariff disputes could trigger a trade war, negatively affecting global growth. Meanwhile, expectations for Federal Reserve interest-rate cuts in 2026, a weakening US dollar, and central banks’ accumulation of large gold reserves have further fueled demand.
“Gold has hit record highs on its glittering run upwards and continues to attract investors as a safe haven amid concerns over US trade and geopolitical actions,” said Susannah Streeter, chief investment strategist at Wealth Club.
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