Gold prices surged to an all‑time high on Tuesday, breaking past $4,100 per ounce, fueled by renewed US‑China trade tensions and expectations of Federal Reserve interest rate cuts.
Spot gold jumped as much as 2.2%, reaching $4,116.77 before settling near $4,106.48.U.S. December gold futures also rallied, reflecting bullish sentiment among investors.
Analysts point to several key drivers behind the rally:
- Safe‑haven demand has surged amid escalating geopolitical concerns and fresh tariff threats between Washington and Beijing.
- Hopes for imminent Fed rate cuts have undermined U.S. dollar strength, making gold more attractive.
- Strong central bank and institutional buying, along with continued flows into gold ETFs, are providing structural support.
- Bank of America recently lifted its 2026 forecast for gold to $5,000 per ounce, citing persistent macro risks and a more dovish Fed view.
The silver market is riding the same wave — prices broke records alongside gold as investors look for hedges in uncertain times.
Outlook: Many strategists expect gold’s momentum to continue in the near term. However, a sharp interest rate rebound or resolution in trade tensions could test the strength of the uptrend.
