Gold continues to rise sharply, and as of the morning of October 14, its spot price reached a record $4,179.48 per ounce, marking a new historic high for this precious metal. Over the year, gold has already increased by 57%, and the psychological threshold of $4,100 was surpassed for the first time the day before. As of this morning, one ounce was priced at $4,128.49, which is 0.5% higher than previous figures. The cost of one gram of gold now stands at $133.18.
This is reported by Finway
Factors Driving Gold Prices
The main reasons for this increase are investors’ expectations regarding a potential cut in the key interest rate by the U.S. Federal Reserve as early as October. Additional influences include geopolitical tensions, particularly a new wave of trade disputes between the U.S. and China — the two leading economies in the world. Against this backdrop, there is a noticeable rise in demand for safe assets.
Equally important factors include active gold purchases by central banks and significant inflows into exchange-traded funds. Analysts from leading financial institutions, including Bank of America and Societe Generale, predict that by 2026, the price of gold could exceed $5,000 per ounce.
Silver Market Dynamics
Significant growth is also being recorded in the silver market. According to Bloomberg, silver prices in London rose to a record $53.55 per ounce, although they later decreased slightly. The cost of one gram of silver is currently $1.73, which is nearly a dollar above the previous high recorded back in January 1980.
"Some traders are even renting space on planes to transport silver bars across the Atlantic to take advantage of higher prices in London. Such transports are usually only used for gold, as they are very expensive," the publication writes.
The reason for this frenzy is a lack of liquidity in the London market, particularly due to active silver purchases by India. In recent weeks, the country has significantly reduced its stocks of bars available for trading in London. Additionally, part of the stocks had previously been sent to New York due to fears of the U.S. imposing tariffs on precious metals, leading to a price gap between the two key trading centers.
Gold futures for December delivery on U.S. exchanges also rose by 0.3%, reaching $4,144.10.
Amid trade negotiations between the U.S. and China, it has been revealed that U.S. President Donald Trump plans to meet with Chinese leader Xi Jinping in South Korea at the end of October. Both countries are implementing port fees for shipping companies transporting a wide range of goods — from toys to crude oil.