Gold and silver prices reached record highs on Monday as investors reacted to U.S. President Donald Trump's threat to impose new tariffs on eight European countries. The price of gold touched $4,689.39 (£3,499) an ounce, while silver rose to a peak of $94.08 an ounce.

The surge in precious metals prices occurred amid growing concerns over geopolitical tensions stemming from Trump's announcement on Saturday of a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. The tariffs, which could later rise to 25%, are slated to take effect on February 1 and would remain in place until a deal on Greenland is reached.

European stock markets experienced a downturn as investors grew wary of the escalating trade dispute. Reports indicated that the EU is considering a retaliatory package of tariffs on US imports worth €80 billion ($93 billion).

Precious metals are often viewed as safe-haven assets during times of economic and political uncertainty, driving investors to seek refuge in gold and silver. The prices of both metals have seen significant increases over the past year, reflecting broader anxieties about global stability. Last year, the price of gold soared by more.

The Greenland dispute triggered a renewed surge in gold and silver prices as investors sought the safety of these assets. The situation remains fluid, with potential for further escalation or de-escalation depending on diplomatic efforts and trade negotiations between the US and the EU.