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 concerns over escalating 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, set to take effect on February 1. The tariffs, which could later rise to 25%, are intended to remain in place until a deal on Greenland is reached.

European stock markets experienced a downturn as investors grew apprehensive about the potential economic impact of the tariffs. The move towards precious metals reflects a flight to "safe haven" assets during times of uncertainty, analysts said. Gold and silver are traditionally viewed as stores of value during periods of economic and political instability.

Reports have circulated suggesting that the European Union is considering a retaliatory package of tariffs on US imports, potentially amounting to €80 billion ($93 billion). The potential trade war between the U.S. and Europe has further fueled investor anxiety and contributed to the rise in gold and silver prices.

Last year, the price of gold soared, driven by similar concerns over global economic uncertainty and trade disputes. The current situation underscores the continued sensitivity of financial markets to geopolitical events and trade policy decisions. The situation remains fluid, and market participants are closely monitoring developments regarding the proposed tariffs and potential responses from the EU.