Surge in Gold Prices

Gold prices surged to new heights as geopolitical uncertainty influenced market behavior. On Monday, February gold futures rose by 1.71% to $4,674.20 per ounce, following a record high reached last week.

Spot gold prices were also up, increasing 1.6% to $4,668.14 per ounce, as investors sought safer investment options amid a turbulent economic landscape.

Silver Joins the Rally

Silver followed gold's upward trend. U.S. silver futures for March reached a record $93.035 per ounce, marking a 5.06% increase, while spot silver was up 3.55% at $93.16 per ounce.

The increase in silver prices reflects a growing preference for precious metals during uncertain times.

Impact of Tariffs on Markets

President Donald Trump announced tariffs of 10% on goods from eight European countries, effective February 1, 2026, with the possibility of increasing to 25% by June 1 if no agreement is reached. This announcement has rattled markets, leading to a drop in shares of European automakers and luxury goods.

The Stoxx Europe 600 Automobiles & Parts Index fell by 2.2%, while the Stoxx Europe Luxury 10 index dropped by 2.9%, as investors reacted to the potential trade conflict.

Market Volatility and Federal Reserve Investigation

The Justice Department's ongoing criminal investigation into Federal Reserve Chair Jerome Powell is also contributing to market volatility. Investors are weighing the potential long-term effects of Trump's strategies to pressure the Federal Reserve to lower interest rates.

The combination of geopolitical tensions and economic uncertainties has led to a cautious market environment.

Other Metals Respond to Demand

In addition to gold and silver, other base metals have seen price increases. U.S. copper futures for March were last seen 0.54% higher at $5.8625 per ounce.

The demand for copper is driven by its applications in energy and data center infrastructure, indicating a robust market for this metal.