Investors flee to gold and silver as Trump’s Greenland tariff threats rattle European stocks, hitting luxury and auto sectors while boosting safe havens.
LONDON: Global investors sought safety in precious metals and sold stocks on Monday following new tariff threats from US President Donald Trump.
The flight was triggered by Trump’s weekend vow to impose tariffs of up to 25% on European countries unless Greenland is ceded to the United States.
Gold and silver prices surged, with silver hitting a new record high, while European stock markets slid.
“Gold surged to a record high and stocks wobbled as fresh worries about Greenland surfaced,” noted Neil Wilson, investor strategist at Saxo UK.
Gold traded around 1.6% higher at the European close, while silver rose by more than 4%.
Market jitters intensified after the US Treasury chief warned any retaliatory EU tariffs would be “unwise”.
Analyst Ipek Ozkardeskaya described the constant news flow from Trump’s Greenland campaign as “abnormal”.
“I lose my words in the absurdity of the news flow,” she said.
Wall Street was closed for a holiday, but selling swept European equity markets as sentiment turned risk-averse.
Luxury and auto sectors were hit hard, with LVMH shares dropping close to 5% and BMW falling nearly 4%.
Some defence stocks like Germany’s Rheinmetall climbed more than 1%.
Separately, the IMF upgraded its 2026 global growth forecast but warned renewed trade tensions could cause disruptions.
It projects world economic growth to hold steady at 3.3% this year, matching 2025’s pace.
Official data also showed China’s economy grew at one of its slowest rates in decades last year.
Chinese stocks closed mixed at the start of the new trading week.
