Gold is trading higher than 2%, while silver is surging more than 6% at the start of the European session on Monday, January 26, the opening session of the week, both reaching new record highs. This surge is attributed to escalating trade tensions between the United States and Canada, which have boosted demand for safe-haven assets. Gold is trading up approximately 2.13% at $5,088 per ounce, while silver is trading at $109.49 per ounce, a 6.35% increase.

The rise in safe-haven demand was further fueled by US President Donald Trump’s threat at the start of the week. He announced that the US would impose 100% tariffs on Canadian imports if a trade agreement is reached with China. Trump asserted that China has complete control over Canada, further escalating the rhetoric and threats exchanged between the US and Canadian presidents.

The US dollar index is trading down 0.40% at the start of the week, reaching 96.92, its lowest level since September. This decline is supporting gains in the metals sector as markets await the Federal Reserve meeting on Wednesday.

Platinum is trading at $2,876, up 3.89%, while palladium is up approximately 3.10%, trading at $2,072.