Gold at record high on escalating US-China trade tension
Mon Oct 13 2025
Gold soared to a record high on Monday, lifted by safe-haven demand amid renewed US-China trade tension and the expectation of US Federal Reserve interest rate cuts, while silver also surged to a record high.
Spot gold was up 0.7% at $4,044.29/oz by 2.53am GMT, after hitting a record high of $4,059.30 earlier in the session.
US gold futures for December delivery rose 1.6% to $4,062.50.
US President Donald Trump on Friday imposed 100% tariffs on Chinese goods to the US and announced new export controls on critical software effective November 1 in response to China’s curbs on rare earth elements and equipment, which Beijing defended on Sunday as justified while stopping short of imposing additional levies on US goods.
“It’s interesting because developments in the Middle East recently had been a diminished tailwind for the gold market, but now we’ve got this re-emergence of risks due to inflamed trade tensions between the US and China,” Capital.com analyst Kyle Rodda said.
Spot silver jumped 2% to a record high of $51.52/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.
Non-yielding bullion has gained 54% 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.
Markets are pricing in a near-certain chance of a 25 basis point (bp) rate cut in October followed by a similar reduction in December.
Fed chair Jerome Powell is set to address the National Association for Business Economics annual meeting on Tuesday, which may provide fresh rate cut cues. Other Fed officials are scheduled to speak throughout the week.
Elsewhere, Trump blamed Democrats for his decision to lay off thousands of federal workers during the government shutdown, which began on October 1, and has delayed key economic data releases.
On the geopolitical front, several world leaders, including Trump, are meeting in Egypt on Monday to discuss ceasefire plans for Gaza.
Platinum rose 2.6% to $1,628.80 and palladium gained 2.6% to $1,442.06.