Gold futures shattered records during weekend trading, reaching $4,660 per ounce as President Donald Trump's latest tariff threats rattled global markets. Silver followed suit, climbing above $94/oz and posting a 31% year-to-date gain. Meanwhile, Bitcoin slumped 2.45% to $92,711, dragging the total crypto market cap down 2.66% to $3.14 trillion.
Tariff Escalation: 10% Now, 25% by June
Trump announced a 10% tariff on imports from Germany, France, the UK, and the Netherlands starting February 1, with plans to raise it to 25% by June 1. The move is tied to U.S. demands for Greenland purchase rights, alarming European leaders. Officials are preparing an emergency summit and weighing up to €93 billion in retaliatory measures.
The sudden trade-war escalation pushed investors into safe havens. Gold's rally accelerated, while silver benefited from strong industrial demand in solar panels and electronics coupled with a global supply deficit. Copper, steel, and platinum also held firm.
Risk Assets Hit: S&P 500 Futures Slip, Crypto Liquidations Exceed $500M
Higher tariffs threaten corporate profits and growth expectations. U.S. stock futures edged lower: S&P 500 fell 0.06%, Nasdaq 100 dropped 0.07%, and Dow Jones traded down. In crypto, over $500 million in leveraged long positions were liquidated within an hour as weekend liquidity thinned.
Ethereum shed 2.96%, BNB lost 2.25%, XRP declined 4.49%, and Solana plunged 6.35%. Despite the sell-off, on-chain data show large holders accumulating and ETF inflows remaining robust, indicating institutional confidence in a rebound.
Outlook: UBS Sees Gold at $5,000; Crypto Recovery Hinges on Sentiment
Analysts at UBS project gold could reach $5,000/oz if inflation risks persist. Weakening traditional currencies, including the U.S. dollar, add further uncertainty. For crypto, the path ahead depends on tariff negotiations, Fed policy signals, and the degree of leverage cleanup. Bitcoin's ability to hold the $90,000 level will be a key battleground in the near term.