Silver Hits $94 and Gold Soars to $4,689 as Martin Luther King Day Market Closure Limits US Reaction

Precious metal markets delivered remarkable performances on Monday, achieving unprecedented price milestones while American markets remained closed for Martin Luther King Jr. Day observance. 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 closure of American markets for the Martin Luther King Jr. Day holiday created unusual trading dynamics, with European and Asian markets processing Trump’s tariff announcement without American participation. This asymmetric market response allowed precious metal prices to rally and European stocks to decline without simultaneous US equity or bond market reactions that might have influenced trajectories. Tuesday’s American market opening will provide first opportunity for US investors to respond directly to weekend tariff announcements.
European equity markets demonstrated widespread weakness without US market counterbalancing, 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. American technology stocks listed on European exchanges declined despite US markets remaining closed, providing some indication of potential Tuesday American market sentiment.
Market analysts note that Monday’s price movements occurred without American institutional investor participation, potentially creating additional volatility when US markets reopen Tuesday. American investors will process not only Trump’s original tariff announcement but also Monday’s European market reactions and precious metal rallies when making their own positioning decisions. The holiday-delayed US response creates potential for Tuesday volatility as American markets catch up to developments that European markets have already digested.
Economic forecasting models project tangible consequences for European growth trajectories, with baseline scenarios estimating 0.2 percentage point reductions in GDP expansion. Tuesday’s American market opening will reveal whether US investors share European concerns about tariff impacts or view situations differently, potentially either amplifying Monday’s precious metal rallies or creating corrective pressures. British economists warn of possible GDP contractions ranging from 0.3% to 0.75%, while precious metal analysts emphasize that Tuesday’s delayed American market reaction—following Monday’s European-dominated trading—creates additional uncertainty that may sustain elevated demand for gold and silver as markets await fuller global consensus on tariff implications.