Global financial markets were thrown into turmoil on Monday as gold and silver surged to record peaks following a major escalation in trade tensions.

The rally in safe-haven assets was triggered by US President Donald Trump’s latest threat to impose steep tariffs on eight European allies—Denmark, France, Germany, the UK, Norway, Sweden, the Netherlands, and Finland—over their opposition to his plans for the United States to acquire Greenland.

The President announced that a 10 percent tariff will take effect on February 1, with rates scheduled to climb to 25 percent by June 1 unless a deal for the "complete and total purchase" of the Danish territory is reached.

This ultimatum follows a weekend of failed diplomatic talks and a joint military exercise in Greenland that Trump characterized as a "dangerous situation." In response, the targeted nations issued a rare joint statement warning that such "blackmail" risks a "dangerous downward spiral" in transatlantic relations.

The threat of a renewed trade war sent shockwaves through the investment world:

• Precious Metals: Gold hit an all-time high of USD 4,690.59 per ounce, while silver struck USD 94.12, as investors fled riskier assets.
• Equities: Stock markets across Asia and Europe largely retreated. Tokyo’s Nikkei 225 fell 1.0 percent, while Hong Kong’s Hang Seng dropped 0.7 percent. US futures also pointed significantly lower.
• Currency: The US dollar weakened as the euro, yen, and sterling gained ground, reflecting a rising "political risk premium" on American assets.

In Brussels, French President Emmanuel Macron has reportedly urged the EU to activate its never-before-used "Anti-Coercion Instrument," a powerful trade tool designed to retaliate against economic bullying.

Member states are already discussing counter-levies on approximately Euro93 billion (USD 108 billion) of US goods.

Adding to the unease, US Commerce Secretary Howard Lutnick issued a separate warning to South Korean and Taiwanese chipmakers, threatening 100 percent tariffs unless they shift more production to American soil, further signaling a shift toward aggressive industrial protectionism.

Key figures:

Market / Asset	Status	Value / Rate
Tokyo - Nikkei 225	? DOWN 1.0%	53,412.88
Hong Kong - Hang Seng	? DOWN 0.7%	26,670.01
Shanghai - Composite	? DOWN 0.1%	4,099.23
Euro / Dollar	? UP	USD 1.1628
Pound / Dollar	? UP	USD 1.3397
Dollar / Yen	? DOWN	Yen 157.54
Euro / Pound	? UP	86.79 p
WTI Crude (Oil)	? UP 0.1%	USD 59.52 / bbl
Brent Crude (Oil)	⚪ FLAT	USD 64.15 / bbl
New York - Dow (Close)	? DOWN 0.2%	49,359.33
London - FTSE 100 (Close)	⚪ FLAT	10,235.29

Source: AFP