Spot silver advanced 4.4% to US$93.85 per ounce, after hitting a record high of US$94.08
[BENGALURU] Gold and silver prices surged to record highs on Monday (Jan 19), as investors flocked to safe-haven assets on intensifying tensions, after US President Donald Trump threatened to impose extra tariffs on European countries over the control of Greenland.
Spot gold climbed 1.6 per cent to US$4,670.01 per ounce by 9.10 am, after scaling an all-time high of US$4,689.39.
US gold futures for February delivery jumped 1.8 per cent to US$4,677.
Spot silver advanced 4.4 per cent to US$93.85 per ounce, after hitting a record high of US$94.08.
Trump on Saturday vowed to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland, escalating a row over the future of Denmark’s vast Arctic island.
European Union ambassadors reached a broad agreement on Sunday to intensify efforts to dissuade Trump from imposing tariffs on European allies, while also preparing retaliatory measures should the duties go ahead, EU diplomats said.
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US stock futures and dollar slid as Trump’s latest tariff threats increased investors’ appetite for safe-haven gold, yen and Swiss franc, in a broad risk-averse move across markets.
Federal Reserve vice-chair for Supervision Michelle Bowman said on Friday that a fragile job market that could weaken quickly means the US central bank should stand ready to cut interest rates again if needed.
Non-yielding gold thrives in a low interest rate environment and during economic uncertainties.
China’s economic growth likely slowed to a three-year low in the fourth quarter as domestic demand softened, and while the full-year pace is set to hit close to Beijing’s target, trade tensions and structural imbalances pose significant risks to the outlook.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 1.01 per cent to 1,085.67 metric tonnes on Friday.
Gold demand in India stayed muted last week as prices hit record highs again, taking the shine off retail buying, while China demand remained steady ahead of the Chinese New Year.
In other precious metals, spot platinum added 1.9 per cent to US$2,373.08 per ounce, while palladium rose 0.5 per cent to US$1,809 per ounce. REUTERS
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