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 a decline in European stock markets, reflecting investor anxiety over escalating geopolitical tensions. Trump announced on Saturday that a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would take effect on February 1, with the potential to increase to 25% until an agreement regarding Greenland is reached.

Precious metals are often viewed as safe-haven assets during times of uncertainty, driving the increased demand for gold and silver. The EU is reportedly considering a €93 billion (£80 billion) package of tariffs on U.S. imports in response to Trump's proposed tariffs.

Worries over the Greenland dispute triggered a further rise in gold and silver prices as investors sought safer investments. Last year, the price of gold soared, reflecting a broader trend of investors seeking stability amid global economic and political uncertainty. The current situation underscores the sensitivity of financial markets to geopolitical events and trade disputes.