Gold and silver hit record highs after Trump threatened new tariffs on China

Gold prices hit another record high on Monday as investors increased safe havens after US President Donald Trump renewed tariff threats against China, while expectations of US interest rate cuts boosted the metal’s appeal.

Silver also jumped to a record high, following gold’s rally.

Spot gold rose 1.4% to $4,075.29 an ounce as of 1215 GMT, after hitting a record $4,084.75/oz.

U.S. gold futures for December delivery rose 2.4% to $4,094.90.

Trump reignited the US trade war with China on Friday, threatening 100% tariffs on imports of Chinese goods into the United States and announcing new export controls on critical software before November 1 in retaliation against Beijing restricting exports of critical minerals.

However, Trump wrote in a message on Truth Social on Sunday: “Don’t worry about China, everything will be fine!” Trade tensions remain a focus for markets, UBS analyst Giovanni Staunovo said, adding that “while they have eased again between the US and China, the 100% additional tariff threat remains.” “Continued strong investment and central bank demand should further support gold. We target a move towards $4,200/oz,” he added.

Spot silver rose 2.4% to $51.48/oz, after hitting a record high of $51.70/oz, driven by similar factors to gold, in addition to spot market tightness.

Goldman Sachs said on Sunday that silver prices are expected to rise in the medium term due to private investment flows, but warned of increased near-term volatility and downside risks compared to gold.

Bank of America on Monday upgraded its price forecasts for precious metals, raising the 2026 outlook for gold to $5,000 per ounce and for silver to $65/oz.

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

Non-yielding bullion is up 53% this year, driven by geopolitical risks, in addition to strong central bank gold buying, exchange-traded fund inflows, expectations of Fed rate cuts and economic uncertainties due to tariffs.

On the monetary policy front, traders are now pricing in a 25 basis point cut in both October and December, with a 97% and 91% probability respectively.

Fed Chairman Jerome Powell will get a chance to give his views on monetary policy when he speaks about the economic outlook at the NABE annual meeting on Tuesday.

Several Fed officials will also speak this week.

Platinum rose 3.9% to $1,649.49 and palladium rose 2.7% to $1,443.08.