WASHINGTON: Gold prices climbed to an all-time high on Monday as investors flocked to safe-haven assets amid escalating trade tensions between the United States and China and growing expectations of interest rate cuts by the US Federal Reserve. Silver also followed suit, touching a historic peak.
Spot gold rose 0.7 percent to $4,044.29 per ounce by 0253 GMT, after earlier hitting a record $4,059.30. US gold futures for December delivery gained 1.6 percent to $4,062.50.
The surge came after President Donald Trump announced 100 percent tariffs on Chinese goods bound for the United States and unveiled new export restrictions on critical software effective November 1. The move followed Beijing’s recent curbs on rare earth exports, which China defended on Sunday as a legitimate step but did not retaliate with new tariffs.
Kyle Rodda, an analyst at Capital.com, said the renewed tension between the two largest economies had brought fresh momentum to the gold market. “Developments in the Middle East had recently been a reduced factor for gold prices, but the re-emergence of risks tied to US-China relations has reignited investor interest,” he said.
Silver follows gold’s rally
Silver jumped 2 percent to a record $51.52 per ounce, supported by the same safe-haven sentiment and a tight supply in the spot market. Analysts at Goldman Sachs said silver could continue to climb in the medium term due to private investment flows, though they warned of short-term volatility and steeper downside risks compared to gold.
Gold has already surged 54 percent this year, buoyed by geopolitical tensions, strong central bank buying, inflows into exchange-traded funds, and expectations of lower borrowing costs. Markets are now pricing in a near-certain 25-basis-point rate cut in October, with another likely in December.
Fed Chair Jerome Powell is expected to speak at the National Association for Business Economics (NABE) meeting on Tuesday, which may offer fresh clues on the central bank’s monetary path. Several other Fed officials are also due to deliver remarks throughout the week.
Political and global backdrop
Meanwhile, the ongoing US government shutdown, which began on October 1, continues to delay key economic data releases. President Trump has blamed Democrats for the layoffs of thousands of federal employees resulting from the shutdown.
On the international front, world leaders, including Trump, gathered in Egypt on Monday to discuss a possible ceasefire in Gaza, a development that could influence broader market sentiment.
Among other precious metals, platinum climbed 2.6 percent to $1,628.80, while palladium also gained 2.6 percent to $1,442.06.
Gold rate in Pakistan
Turning to the local market, gold prices in Pakistan rose on Saturday, mirroring the surge seen internationally. According to data shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola climbed by Rs2,100 to reach Rs422,700.
Similarly, the price of 10-gramme gold increased by Rs1,800, settling at Rs362,397. This rise followed a decline on Friday, when the per tola rate had dropped by Rs4,578 to close at Rs420,600.
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