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Gold, silver hit record highs as Trump threatens fresh China tariffs

Published: 13 Oct. 2025, 21:45

Gold bars are on display at a gold exchange office in Seoul on Oct. 2. [NEWS1]

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 1.4 percent to $4,075.24 per ounce, as of 10:33 GMT, after hitting a record $4,079.70 per ounce.

U.S. gold futures for December delivery surged 2.4 percent to $4,094.70.

Trump on Friday reignited the U.S. trade war with China, threatening 100 percent tariffs on Chinese goods imports into the United States and announcing new export controls on critical software by Nov. 1 in response to Beijing's curbing of 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 United States 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 per oz," he added.

Spot silver jumped 1.5 percent to $51.03 per oz, after hitting a record high of $51.70 per 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 per ounce.

BofA is the first major bank to raise its gold price forecast to $5,000 per ounce for 2026.

On a technical basis, the relative strength index for gold and silver stands at 80 and 83, respectively, indicating the metals are overbought.

Non-yielding bullion has gained 53 percent 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.

On the monetary policy front, traders are now pricing in a 25-basis-point cut each in October and December, with a 97 percent and 89 percent 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 also scheduled to speak throughout the week.

Platinum, rose 3.4 percent to $1,641.21 and palladium gained 2.6 percent to $1,441.97.

Reuters