Trump announced a 10% tariff on goods from countries including France, Germany and the UK, which would kick in on Feb 1 and rise to 25% in June.

The move sparked fears of retaliation from Europe, which could lead to a major trade war, supporting haven demand for precious metals.

European leaders will hold an emergency meeting in the coming days as they explore possible counter-measures.

Member states are discussing several options for how to respond, including imposing retaliatory levies on €93 billion (US$108 billion) of US goods, according to people familiar with the talks.

French President Emmanuel Macron may request the activation of the EU’s anti-coercion instrument – the bloc’s most powerful retaliation tool.

Precious metals have rallied sharply this year, following dramatic gains in 2025, as the US seized Venezuela’s leader and then doubled down on threats to take Greenland.

The Trump administration has also renewed attacks on the Federal Reserve, intensifying worries over the central bank’s independence and fueling the debasement trade, where investors avoid currencies and government bonds on concerns over debt levels.

Spot gold climbed 1.7% to US$4,676.22 an ounce as of 7:35am in Singapore, hitting a peak of US$4,690.59 earlier.

Silver surged 3.9% to US$93.6305, and touched a high of US$94.1213.

Platinum and palladium were also up. The Bloomberg Dollar Spot Index dipped 0.1%.