Gold surged to another record high on Monday as escalating trade tensions between the United States and China drove investors toward safe-haven assets, while growing expectations of U.S. interest rate cuts further boosted demand for the precious metal.
Silver followed suit, also reaching an all-time high.
As of 10:04 a.m. ET (1404 GMT), spot gold rose 1.9% to $4,093.39 per ounce, after touching a record $4,096.35/oz. Meanwhile, U.S. gold futures for December delivery jumped 2.8% to $4,113.40.
Gold Rates Today in Pakistan
Global Uncertainty Fuels Precious Metal Rally
“Rises in gold and silver prices happen when investors are concerned about the state of the world, either economically or politically,” said Jeffrey Christian, managing partner of CPM Group, noting that expectations of U.S. interest rate cuts are also contributing to the surge.
On the geopolitical front, President Donald Trump reignited trade tensions with China on Friday, ending a fragile truce between the world’s two largest economies.
Traders are now pricing in a 97% probability of a 25-basis-point Federal Reserve rate cut in October and a 100% chance of another cut in December. As a non-yielding asset, gold typically performs well in low-interest-rate environments.
Gold has soared 56% this year, surpassing the $4,000/oz milestone for the first time last week, driven by economic and geopolitical uncertainties, expectations of rate cuts, and strong central bank demand.
Analysts from Bank of America and Societe Generale now forecast gold prices to reach $5,000/oz by 2026, while Standard Chartered has raised its 2026 projection to an average of $4,488/oz.
“Given the carousel of drivers, and how short-lived dips have been, this rally has legs in our view,” said Suki Cooper, Global Head of Commodities Research at Standard Chartered Bank. “However, a near-term correction would be healthier for a sustained long-term uptrend.”
Silver Also Hits Record High
Spot silver climbed 3.3% to $51.91/oz, after touching a record $52/oz earlier in the session. The metal’s rally has been supported by the same factors driving gold higher, along with tightening supply in the spot market.
