Gold approaches $4,700 milestone as concerns over a US–EU trade conflict spark a surge in safe-haven demand

Gold Surges to Record High Amid Intensifying US-EU Trade Tensions

On Monday, gold prices (XAU/USD) rebounded sharply, climbing over 1.5% after dipping to their lowest point in four days last Friday. The precious metal now trades close to the $4,700 mark, setting a fresh all-time high as investors react to growing geopolitical risks. This surge follows a weekend escalation in trade hostilities between the United States and the European Union.

At the time of reporting, gold is valued at $4,672. The rally was triggered after US President Donald Trump announced a 10% tariff on imports from eight European nations, effective February 1, in response to a dispute involving Greenland. He also signaled the possibility of even steeper tariffs by June 1. These developments led to a sharp decline in the US Dollar and prompted a flight to safety, boosting demand for assets such as gold, silver, and certain currencies.