Safe-haven demand propelled gold and silver prices to fresh record highs on Monday, even as experts see further upside.
Oil prices slipped, reversing the gains from Friday as civil protests in Iran eased, reducing the threat of a US attack and lowering crude oil supplies.
Meanwhile, base metals moved higher this morning, following a decline in equity futures. This market reaction came after Trump proposed new tariffs targeting eight European countries due to the dispute over Greenland.
The three-month copper contract on the London Metal Exchange rose nearly 1% to $12,928 per ton, while the aluminium contract was 0.5% higher at $3,156.50 per ton.
Bullion rally continues
Renewed trade tensions prompted investors to rush for ‘safety’ this morning, leading to a surge in precious metals.
Gold, in particular, saw a significant jump of over 1.5% in early trading, hitting a new all-time high just under $4,700.
“The move was driven by a combination of rising geopolitical risk, trade-war fears and a pullback in the US dollar,” said David Morrison, senior market analyst at Trade Nation.
Despite reduced expectations for multiple Fed rate cuts later in 2026, gold’s upward momentum remained intact, supported by a broader loss of confidence in other US assets.
At the time of writing, the COMEX gold contract was at $4,675.74 per ounce, up 1.8%, while silver was at $93.080 per ounce, up 5.1%.
Silver once again surpassed gold in performance, achieving a fresh record high with a rally of over 3.5%.
The white metal saw a sharp rebound as Asian Pacific markets opened, briefly breaking above the $94 mark after experiencing a pullback late last week.
“The prevailing view amongst the bulls is that silver is in short supply, while demand from both investors and industry remains strong,” Morrison said.
The surge on Monday was primarily fueled by investors seeking safe-haven assets following US President Donald Trump’s warning of imposing additional tariffs on certain European nations, stemming from a disagreement regarding Greenland.
On Saturday, Trump intensified a dispute over Denmark’s vast Arctic island by threatening several European allies with escalating tariffs. This threat was made unless the US is permitted to purchase Greenland.
Oil slips
Oil prices dropped 1% on Monday, giving up the gains from the previous session.
The decline was triggered by easing civil unrest in Iran, which lessened the likelihood of a US attack that might have interrupted the supply from a significant Middle Eastern producer.
The widespread unrest in Iran, sparked by economic difficulties, was put down by a violent government crackdown that officials claim resulted in 5,000 deaths.
The likelihood of a US intervention, which could have threatened oil supplies from Iran, the fourth-largest producer in OPEC, seemed to decrease after Trump appeared to retract earlier threats.
Trump stated on social media that Iran had halted mass hangings of protesters, a plan that the country itself had never publicly announced.
Front-month West Texas Intermediate crude oil briefly broke above the significant resistance level of approximately $61.30 mid-last week, but has since retreated.
Crucially, the drop has not been substantial enough to push it back below the upper resistance line of the downtrend that began building over the summer, according to Morrison.
“The Western perception that the horrific outbreak of regime-backed violence against protestors in Iran has now ceased has been partly responsible for the drop in oil prices,” Morrison said.
Traders will continue to monitor developments across Persia and the Middle East alongside tariff-related risks that could weigh on global growth expectations.
At the time of writing, the WTI crude prices were at $59.08 per barrel, down 0.4%, while Brent was at $63.81 per barrel, up 0.5%.
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