Dubai Telegraph - Gold hits peak, stocks sink on new Trump tariff threat

European countries including Denmark, of which Greenland is an autonomous territory, said they "stand united" against Trump's vow on Saturday to hit them with tariffs of up to 25 percent unless Greenland is ceded to the United States.

"Gold surged to a record high and stocks wobbled as fresh worries about Greenland surfaced," noted Neil Wilson, investor strategist at Saxo UK.

Gold has broken record after record in recent months as the precious commodity, along with sister metal silver, benefits from safe-haven status.

The latest market unrest followed Trump's threats against Iran last week and the recent US ouster of Venezuelan president Nicolas Maduro which triggered volatility in the oil market.

Gold hit a peak of $4,690.59 an ounce on Monday, while silver struck an all-time high of $94.12 an ounce.

The Frankfurt and Paris stock markets retreated around 1.5 percent in late morning deals, as London shed around 0.6 percent.

The dollar fell against main rivals, including the yen.

Wall Street was shut for Martin Luther King Day.

Japanese Prime Minister Sanae Takaichi said she would dissolve parliament this week ahead of a snap election on February 8, hoping for a stronger mandate to push through her ambitious policy agenda.

Reacting to Trump's latest move over tariffs, UK Prime Minister Keir Starmer said a "trade war is in no one's interest".

"The use of tariffs against allies is completely wrong," Starmer told a hastily-arranged press conference Monday.

In stocks trading, the luxury and auto sectors were hit hard by Trump's threats, with the share prices of LVMH and BMW each down 4.0 percent.

However, defence stocks climbed, with Germany's Rheinmetall up 2.8 percent and Britain's BAE Systems gaining 1.8 percent.

The IMF on Monday upgraded its 2026 global growth forecast, citing a boost from tech investments but warning that a reevaluation of AI productivity gains or renewed trade tensions could bring disruptions.

World economic growth is projected to hold steady at 3.3 percent this year, the International Monetary Fund said, raising its forecast by 0.2 percentage points from October.

This would match the pace of growth in 2025.

China's economy grew at one of the slowest rates in decades last year, official data revealed Monday, as authorities struggled to overcome low consumer spending and a debt crisis in the property sector.

Chinese stocks closed mixed at the start of the new trading week.

- Key figures at around 1045 GMT -

London - FTSE 100: DOWN 0.6 percent at 10,174.60 points

Frankfurt - DAX: DOWN 1.4 percent at 24,942.07

Paris - CAC 40: DOWN 1.6 percent at 8,130.12

Tokyo - Nikkei 225: DOWN 0.7 percent at 53,583.57 (close)

Hong Kong - Hang Seng Index: DOWN 1.1 percent at 26,563.90 (close)

New York - Dow: DOWN 0.2 percent at 49,359.33 (close)

Shanghai - Composite: UP 0.3 percent at 4,114.00 (close)

Euro/dollar: UP at $1.1624 from $1.1604 on Friday

Pound/dollar: UP at $1.3410 from $1.3382

Dollar/yen: DOWN at 157.85 yen from 158.07 yen

Euro/pound: UP at 86.72 pence from 86.69 pence

Brent North Sea Crude: DOWN 0.6 percent at $63.76 per barrel

West Texas Intermediate: DOWN 0.5 percent at $59.02 per barrel

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B.Gopalan--DT