Gold broke via $4,100 per ounce for the primary time on Monday, hitting one other file excessive on renewed US-China commerce tensions and expectations of rate of interest cuts, whereas silver additionally rose to an all-time excessive.
Spot gold was up 2.2% to $4,106.48 per ounce, in afternoon buying and selling, after hitting a file $4,116.77.
US gold futures for December settled 3.3% larger at $4,133.
Gold has climbed 56% this 12 months and scaled the $4,000 milestone for the primary time final week, pushed by elements together with geopolitical and financial uncertainties, expectations of rate of interest cuts and strong central financial institution shopping for.
“Gold may simply proceed its upward momentum. We may see costs north of $5,000 by the top of 2026,” mentioned Phillip Streible, chief market strategist at Blue Line Futures.
Regular central financial institution purchases, agency ETF inflows, US-China commerce tensions and the prospect of decrease rates of interest are offering structural help for the market, Streible added.
On the geopolitical entrance, President Trump reignited commerce tensions with China on Friday, ending an uneasy truce between the world’s two largest economies.
In the meantime, merchants are pricing in a 97% chance of a 25-basis-point Federal Reserve charge reduce in October and a 100% probability for December. Gold, a non-yielding asset, tends to do properly in low-interest-rate environments.
Analysts at Financial institution of America and Societe Generale now anticipate gold to achieve $5,000 in 2026, whereas Commonplace Chartered has raised its forecast to a mean of $4,488 subsequent 12 months.
“This rally has legs in our view, however a near-term correction could be more healthy for a longer-term uptrend,” mentioned Suki Cooper, world head, commodities analysis at Commonplace Chartered Financial institution.
Spot silver rose 3.1% to $51.82, touching a file excessive of $52.12 earlier within the session, buoyed by the identical elements supporting gold and spot market tightness.
Technical indicators present each are overbought, with the relative energy index (RSI) at 80 for gold and 83 for silver.
Platinum rose 3.9% to $1,648.25, and palladium gained 5.2% to $1,478.94.
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