Gold Breaks Another Record! What's the Secret?
On Thursday (16/10/25), gold prices hit a new record high and strengthened for the fifth consecutive session, as investor sentiment sought refuge amid escalating trade tensions between the US and China, a partial US government shutdown, and expectations of interest rate cuts. Spot gold rose 0.8% to an all-time high of $4,241.77 per ounce, while US gold futures for December delivery jumped 1.2% to $4,253.70.
US officials last week criticized China's expanded rare earth metal export policy, calling it a threat to global supply chains, and threatened retaliatory measures such as export controls and tariffs on China's purchases of Russian oil. These statements, along with the Fed's signaling a possible future interest rate cut, are considered a boost for gold prices by analysts—including Kyle Rodda of OANDA, who called trade conflicts and monetary policy "powerful fuel" for gold.
In addition to geopolitical factors and monetary policy, strong demand from central banks and institutional investors has also fueled gold's surge this year. Non-yielding gold is becoming an attractive option in a low-interest rate environment—the price of gold has surged by around 61% this year. According to ANZ projections, gold prices could reach $4,400 per ounce before the end of the year, as holdings of gold ETFs like the SPDR Gold Trust have risen to 1,022.60 tonnes—the highest since July 2022. (asd)
Source: Newsmaker.id
