Gold Soars to $4,689 and Silver Hits $94 as 15-Point Jump from 10% to 25% Threatens Severe Economic Impact

Precious metal markets delivered remarkable performances on Monday, achieving unprecedented price milestones as investors processed the magnitude of President Trump’s proposed tariff escalation. Gold touched a record high of $4,689 per ounce before settling at $4,671, representing a solid 1.6% gain. Silver’s rally proved even more spectacular, surging to an all-time peak of $94.08 per ounce and maintaining a 3.6% advance to close at $93.15.
The immediate source of market disruption traced to the substantial 15-percentage-point jump embedded in Trump’s tariff framework—from 10% initial rates in February to 25% escalated rates by June. This dramatic increase represents a 150% escalation in tariff levels over just four months, creating potential for severe economic disruption if diplomatic negotiations fail. The magnitude of the planned increase suggests Trump views graduated pressure as more effective than immediate maximum tariffs.
European equity markets demonstrated widespread weakness, with France’s Cac index registering the most significant decline at 1.8%, followed by Germany’s Dax and Italy’s FTSE MIB each falling 1.3%. Britain’s FTSE 100 showed marginally better performance with a 0.4% loss. The automotive sector bore the brunt of investor anxiety, with premium German manufacturers Volkswagen, BMW, and Mercedes-Benz all shedding more than 2% of their value, while Stellantis similarly experienced nearly 2% losses.
Economic analysts emphasize that the 15-percentage-point escalation from February to June creates fundamentally different economic environments. While 10% tariffs impose measurable costs on transatlantic trade, 25% tariffs approach prohibitive levels for many product categories, potentially forcing complete supply chain reconfigurations rather than simple price adjustments. The magnitude of June’s potential escalation suggests that February’s initial tariffs, while economically significant, represent relatively moderate pressure compared to what could follow absent diplomatic resolution.
Economic forecasting models project tangible consequences across both tariff scenarios, with impacts scaling dramatically between 10% and 25% rates. The 15-percentage-point June escalation could more than double economic impacts compared to February implementation, with British forecasters warning that GDP contractions could reach the higher end of 0.3% to 0.75% estimates if maximum tariffs proceed. European Union ambassadors face challenging decisions about response calibration, as retaliatory measures sufficient for 10% tariffs may prove inadequate for 25% scenarios. Precious metal analysts note that the substantial magnitude of planned escalation—a 150% increase over four months—sustains elevated investor anxiety and continued strong demand for gold and silver as protective assets.