Gold Hits New All-Time High Above US$4,079/oz

Gold prices reached a new all-time high at US$4,079.70/oz, while silver surged to its highest level in 14 years, as investors increased their bets on safe-haven assets. The move was driven by renewed tariff threats from US President Donald Trump against China and growing expectations of interest rate cuts by the Federal Reserve (Fed).

Spot gold rose 1.4% to US$4,075.24/oz, after hitting a record of US$4,079.70/oz. Meanwhile, spot silver advanced 1.5% to US$51.03/oz, after touching an all-time high of US$51.7/oz.

The rally followed President Trump's renewed trade war threats against China on Oct. 10, 2025, where he threatened 100% tariffs on Chinese goods. Gold, which does not yield interest, has gained 53% so far this year, driven by geopolitical risks and strong central bank buying.

Expectations of a more lenient monetary policy in the United States also contributed to the rally. The Fed implemented its first rate cut since December 2024 last week, and markets are now anticipating two additional 25-basis-point cuts this year, one in October and another in December, reports El Economista.

In response to market conditions, Bank of America (BofA) raised its price forecasts for precious metals, projecting an average of US$4,400/oz for gold and US$56.25/oz for silver in 2025. The bank also increased its 2026 outlook to US$5,000/oz and US$65/oz, respectively.