Gold prices scaled to another record high on Monday as investors revved up their safe-haven bets after U.S. President Donald Trump renewed tariff threats against China, while expectations of U.S. interest rate cuts added to the metal’s allure.
Silver also jumped to an all-time peak, tracking gold’s rally.
Spot gold was up 1.64% to a record $4,083.42 per ounce. U.S. gold futures for December delivery surged 2.55% to $4,102.60.
Trump reignites trade war with China
Trump on Friday reignited the U.S. trade war with China, threatening 100% tariffs on Chinese goods imports into the United States and announcing new export controls on critical software by November 1 in a reprisal against Beijing curbing critical mineral exports.
However, Trump, posting on Truth Social on Sunday, wrote: “Don’t worry about China, it will all be fine!”
Trade tensions remain a focus for markets, said UBS analyst Giovanni Staunovo, adding that “while they have eased again between the U.S. and China, the 100% additional tariff threat remains.”
“Ongoing strong investment and central bank demand should further support gold. We target a move to $4,200/oz,” he added.
Spot silver jumped 2.22% to $51.39/oz, after hitting $51.70/oz, driven by similar factors as gold alongside tightness in the spot market.
Goldman Sachs said on Sunday that silver prices were expected to rise in the medium term due to private investment flows, but warned of heightened near-term volatility and downside risks compared to gold.
Bank of America on Monday raised its price forecasts for precious metals, lifting its 2026 outlook for gold to $5,000 an ounce and for silver to $65/oz. BofA is the first major bank to raise its gold price forecast to $5,000/oz for 2026.
On a technical basis, gold’s and silver’s Relative Strength Index stands at 80 and 83, respectively, indicating the metals are overbought.
Non-yielding bullion has gained 53% year-to-date, driven by geopolitical risks, alongside strong central bank gold-buying, exchange-traded funds inflows, Fed rate cut expectations and economic uncertainties stemming from tariffs.
Traders pricing in October, December Fed rate cuts
On the monetary policy front, traders are now pricing in a 25-basis-point cut each in October and December, with a 95% and 79.8% chance, respectively.
Fed Chair Jerome Powell has a chance to offer his guidance on monetary policy when he speaks on the economic outlook at the NABE annual meeting on Tuesday.
Several Fed officials are scheduled to speak throughout the week.
Platinum, rose 3.76% to $1,645.57and palladium gained 2.92% to $1,446.59.
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