Gold prices soared to a record high above $4,100 per ounce, driven by escalating U.S.-China trade tensions and anticipation of U.S. interest rate cuts.
Spot gold rose 2.4% to $4,114.31 per ounce, peaking at $4,116.77, while U.S. gold futures for December delivery climbed 3.3% to $4,133.90.
Silver also hit an all-time high, up 3.1% to $51.82, with a session peak of $52.07.
Platinum and palladium followed suit, gaining 5% to $1,666 and 6.5% to $1,496.52, respectively.
U.S.-China trade tensions intensified after President Donald Trump threatened 100% duties on Chinese goods in response to China’s rare earth metals export controls.
Despite Trump’s later reassurance on Truth Social that issues with China would resolve, market uncertainty persists.
Geopolitical concerns, coupled with steady central bank buying and robust ETF inflows, have fueled gold’s 56% rise this year.
Analysts at Bank of America, Societe Generale, and Goldman Sachs project gold could reach $4,900-$5,000 by 2026, with Standard Chartered forecasting an average of $4,488 next year.
Expectations of a 25-basis-point Federal Reserve rate cut in October, with a 97% probability, bolster gold’s appeal as a non-yielding asset.
The U.S. government shutdown, now in its thirteenth day, has shifted focus to political developments and Fed commentary.
Technically, gold’s bullish trend persists, with the Relative Strength Index at 80, indicating overbought conditions but strong buying pressure.
A close above $4,100 could target $4,150, though a drop below may signal consolidation between $4,059 and $4,110.
Silver’s RSI at 83 suggests similar overbought momentum.
Analysts note a potential near-term correction but view the long-term uptrend as robust.