Safe Havens Drive Gold to $4,670 and Silver to $93.2 per Ounce Amid US Tariff Escalation on Europe

London | EcoPulse24

Gold prices surged sharply as trade tensions escalated, driven by broad-based hedging flows after the US announced new tariffs on European countries. The yellow metal rose more than 1% to surpass $4,670 per ounce, marking a new record high amid market concerns over the global economic impact of the tariffs.

The move followed an announcement of a 10% tariff on imports from eight European countries effective February 1, with the possibility of an increase to 25% in June if no agreement is reached. The escalation sparked fears in Europe, prompting an emergency meeting to consider possible retaliatory measures, including tariffs on US goods worth €93 billion. Gold's upward momentum has continued this year after a strong performance in 2025, supported by geopolitical tensions in Venezuela and Iran, as well as renewed concerns over the independence of the Federal Reserve.

Similarly, silver jumped more than 4% to approach $94 per ounce, reaching a new record high as hedging demand shifted to the white metal. Despite pressure in the previous two sessions following a US decision not to impose tariffs on critical metals such as silver, demand rebounded strongly amid ongoing trade risks.

Structurally, silver remains supported by a supply deficit, with the London market experiencing shortages last year. Silver's inclusion on the US list of critical minerals last year highlights its importance in green energy technologies and electronics, adding a strategic dimension to its pricing.

Analysis
The overall trend shows a clear shift of risk toward hedging assets with each new trade or political escalation, reinforcing a bullish trajectory fueled by tension and uncertainty. Sustained momentum will depend on the extent of the US–EU trade dispute and developments in geopolitical issues, as hedging considerations converge with structural supply constraints in silver.