Gold and silver hit record highs: US-Europe trade tensions grow; investors seek safety

Gold and silver prices touched all-time highs after rising trade tensions between the US and Europe. Resultantly, concerns grew over the impact of possible tariffs on global trade and economic growth. Gold traded close to $4,700 per ounce, while silver crossed $93 per ounce for the first time. Other metals such as platinum and copper also gained, showing strong demand across the market. Market participants said the rally reflects growing unease about the future of trade ties between major economies. The latest move follows signals from Washington that new tariffs could be imposed on several European countries. European officials have warned of possible countermeasures, raising fears of a wider trade dispute.

A weaker US dollar added to the rise. The dollar slipped against major currencies such as the euro and the Japanese yen. When the dollar falls, commodities priced in dollars become cheaper for overseas buyers, which usually lifts demand. Investors remain worried that trade conflicts could push up prices and slow growth at the same time. Gold is often seen as a hedge against inflation and currency weakness, which explains the strong buying interest. Silver benefited from both safe-haven demand and its use in industry. Demand from sectors such as electronics and renewable energy has stayed firm, while supply remains tight.

Market analysts are becoming more positive about precious metals. Some expect gold prices to move toward $5,000 per ounce in the coming months if trade tensions continue. Silver could also rise further, with some forecasts pointing to the $100 level. Experts say the current environment favors safe assets. High global debt, ongoing inflation risks, and uncertain trade policies are making investors cautious.
The sharp rise in gold and silver prices highlights growing concern about the global economy. A prolonged trade dispute between the US and Europe could hurt growth, raise costs for businesses, and add pressure on inflation. In times of political and economic stress, gold and silver continue to play an important role as stores of value.