Gold Hits Record High as U.S.–China Trade Tensions Escalate; Silver Touches All-Time Peak

Gold surged to a record high on Monday as renewed U.S.–China trade tensions and growing expectations of Federal Reserve rate cuts drove investors toward safe-haven assets. Silver also climbed to an all-time high.

As of 0538 GMT, spot gold was up 1.5% at $4,078.05 per ounce, marking its highest level ever. U.S. gold futures for December delivery rose 2.3% to $4,093.50 per ounce.

On Friday, U.S. President Donald Trump threatened to impose 100% tariffs on Chinese goods and announced new export controls on key software by November 1, in response to China’s restrictions on rare earth elements and equipment. Beijing called the move “reasonable” but refrained from levying additional tariffs on U.S. imports.

“It’s interesting because gold had recently eased on developments in the Middle East, but renewed trade friction between the U.S. and China has brought risk sentiment back into focus,” said Kyle Rodda, analyst at Capital.com.

Spot silver also rallied 2.7% to $51.70 per ounce, hitting a record high amid tight market conditions and similar drivers that have propelled gold.

Goldman Sachs said on Sunday it expects silver prices to rise in the medium term, driven by private investment inflows, though it warned of potential short-term volatility and downside risk compared with gold.

Fueled by geopolitical risks, strong central bank buying, steady ETF inflows, and Fed rate-cut expectations, gold—an asset that yields no interest—has gained 53% so far this year, following a 27% jump in 2024.

Markets are now pricing in an almost certain 25-basis-point rate cut in October, followed by another in December, according to FedWatch data.

Fed Chair Jerome Powell is set to address the NABE annual meeting on Tuesday, where investors will be watching closely for fresh hints on monetary policy. Other Fed officials are scheduled to speak throughout the week.

Meanwhile, Trump blamed Democrats for the ongoing government shutdown, which began on October 1 and has led to the furlough of thousands of federal workers and delays in the release of key economic data.

On the geopolitical front, Trump and several world leaders are meeting in Egypt on Monday to discuss potential ceasefire plans for Gaza.

Elsewhere in the metals market, platinum rose 2.9% to $1,635.35, while palladium gained 3.6% to $1,452.50.