On Monday, the prices of gold and silver surged sharply, reaching record levels. This occurred against the backdrop of increasing demand for safe-haven assets, driven by escalating trade disputes between the U.S. and China, as well as expectations of a potential interest rate cut by the Federal Reserve.
This is reported by Finway
Increase in Gold and Silver Prices
The spot price of gold rose by 1.5%, hitting an all-time high of $4,078.05 per ounce. December gold futures increased even more, by 2.3%, reaching $4,093.50 per ounce. Silver also set a historical record, climbing 2.7% to $51.70 per ounce. Among the factors influencing this, experts cite not only the overall geopolitical tension but also the shortage of physical spot metal in the market.
Trade Tensions Between the U.S. and China
On Friday, U.S. President Donald Trump announced plans to impose 100% tariffs on Chinese goods and declared new export restrictions on critical software starting November 1. The measures were a response to Beijing’s actions, which limited the export of rare earth elements and equipment. In response, Chinese authorities characterized their actions as justified but refrained from imposing additional tariffs on American goods.
“Interestingly, events in the Middle East have recently been a less significant driver for gold, but now the risks have returned due to the escalation of trade between the U.S. and China,” noted Capital.com analyst Kyle Rodda.
According to Goldman Sachs, in the medium term, silver prices will continue to rise due to increased activity from private investors. At the same time, the bank warns of potential high short-term volatility and correction risks in the silver market compared to gold.
Since the beginning of the year, silver has increased by 53%, driven by geopolitical risks, active purchases by central banks, growing interest in ETFs, expectations of Fed rate cuts, and uncertainty related to trade restrictions.