Gold and silver prices reached record highs on Monday as investors reacted to U.S. President Donald Trump's threat to impose fresh 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.

European stock markets experienced a downturn as investors grew concerned about escalating geopolitical tensions. Trump's announcement on Saturday outlined a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, set to take effect on February 1. The tariffs could potentially rise to 25% and would remain in place until an agreement regarding Greenland is reached.

The proposed tariffs stem from opposition to Trump's proposed takeover of Greenland. Reports indicate that the EU is considering a retaliatory package of tariffs on US imports, valued at €80 billion (£93 billion).

The surge in gold and silver prices reflects a broader trend of investors seeking "safe haven" assets amid uncertainty. Precious metals are often viewed as a more secure store of value during periods of economic or political instability. The price of gold soared over the past year, driven by similar concerns.

The situation remains fluid, with the potential for further escalation or negotiation between the US and the EU. The impact on global trade and economic growth will depend on the duration and scope of the tariffs, as well as any retaliatory measures taken by the EU.