In a dramatic turn, gold surged to a fresh record high on Monday, crossing the $4,000 barrier for the first time and topping $4,100 per ounce, as markets grapple with renewed US‑China tension and shifting expectations around U.S. monetary policy.
Spot gold hit $4,078.05 in early trade and later stabilized near $4,067.79. U.S. futures contracts (December delivery) gained over 2%, aligning with bullish sentiment.
Key catalysts driving the rally:
- Trade pressure: Fresh threats of steep tariffs from the U.S. prompted safe‑asset demand, reigniting fears of supply chain disruption and economic fallout.
- Rate cut expectations: Speculation around Fed easing — especially a 25 basis point cut later this year — has bolstered the appeal of non‑yielding assets like gold.
- Institutional interest: Central banks and large investors continue to accumulate gold as a hedge in uncertain times, further tightening supply and pricing pressure.
Silver followed suit, reaching new highs as industrial and safe‑haven demand converge.
With volatility at elevated levels, analysts warn of potential pullbacks but generally maintain a positive bias on gold’s direction, suggesting the metal may continue to test fresh highs barring a sustained shift in interest rate policy or geopolitical de‑escalation.
