Gold Smashes Record Highs as Trade Tensions Trigger Safe-Haven Rush

Commodity markets opened the week in a frenzy, with Spot Gold (XAU/USD) surging to touch fresh all-time highs. The precious metal briefly tested the $4,690 level (according to intraday data sources) before stabilizing, as capital fled risk assets amidst renewed geopolitical friction.

Market Data Snapshot

• Spot Gold (XAU/USD) touched a record high of $4,690.
• Silver (XAG/USD) rallies near all-time highs at $93.90.
• Technical indicators (RSI) show overbought conditions above 70.

The Geopolitical Risk Premium

The primary driver of the rally is the escalation in transatlantic tension. President Trumps threat to levy tariffs on European allies over the Greenland dispute has revived fears of a fragmented global trade order.

“The uncertainty around US trade policy is reigniting concerns of a broader US–EU dispute,” noted analysts at Commerzbank. In this environment, gold's appeal as a non-yielding, safe-haven asset has eclipsed the headwinds typically posed by a firm US Dollar.

Silver Joins the Rally

Silver (XAG/USD) is participating in the bullish momentum, trading just shy of its own all-time highs near $93.90. The risk-averse sentiment is creating a broad-based lift for precious metals, despite industrial demand concerns that usually weigh on Silver during trade wars.

Technical Outlook

The technical picture for Gold remains overextended but bullish. Momentum indicators like the RSI have entered “hot” territory (above 70), suggesting potential for short-term profit-taking. However, the psychological breakout above key resistance levels suggests that dips are likely to be bought aggressively as long as the trade rhetoric from Washington remains hostile.