Gold hit a new record high above $4,100 on Tuesday (October 14), boosted by expectations of an interest rate cut this month by the US Federal Reserve and investors fleeing for safety amid escalating trade tensions between Washington and Beijing.
Spot gold rose 0.9% to $4,145.85 per oz at 1:50 PM ET (17:50 GMT), after hitting a record high of $4,179.48 earlier in the session. US gold futures for December delivery rose 0.7% to close at $4,163.40.
The precious metal has surged about 57% this year, breaking through $4,100 for the first time on Monday. The rally has been driven by a combination of factors, including geopolitical uncertainty, expectations of a US interest rate cut, robust central bank buying, and strong ETF inflows.
Analysts at Bank of America and Societe Generale now expect gold to reach $5,000/oz by 2026.
"Elevated US-China trade tensions, the ongoing government shutdown, and expectations of further Fed policy easing are all supporting gold," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
US President Donald Trump's threat to impose 100% tariffs on Chinese goods, tit-for-tat port tariffs by the world's two largest economies, and the broader macro trend of dedollarization could push gold to $5,000/oz by the middle of next year, Grant added.
Trump is scheduled to meet with Chinese leader Xi Jinping in South Korea later this month, Treasury Secretary Scott Bessent said on Monday. Non-yielding gold tends to perform well in a low-interest-rate environment, and the market is expecting a 25 basis point rate cut at this month's Fed meeting, followed by a similar cut in December.
"Based on the data we have, it's safe to say that the employment and inflation outlook appears to have changed little since our September meeting four weeks ago," Fed Chairman Jerome Powell said in a speech at the National Association for Business Economics' annual meeting.
Spot silver, driven by the same factors that boosted gold and tight spot markets, reached a record high of $53.60/oz before weakening 0.9% to $51.86. Platinum weakened 0.3% to $1,640.76, and palladium rose 3.2% to $1,521.50. (alg)
Source: Reuters
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" ...
Gold prices hit another record high, while silver held near its all-time high. This rise was driven by two major factors: the escalating Greenland crisis and turmoil in the Japanese government debt ma...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refr...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors int...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ti...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...