Gold Nears Record as Traders Look Beyond Easing Trade Tensions
Gold advanced to trade near its record as investors piled into the precious metal despite easing trade tensions and the prospect of the US government reopening.
President Donald Trump said the US will “be fine” with China just before the two sides return to the negotiating table. Meanwhile, National Economic Council Director Kevin Hassett suggested the shutdown might end this week.
The developments would have dampened demand for havens such as gold, but traders took advantage of a selloff on Friday to buy more bullion instead.
There’s nothing “but buyers” in the gold market, said Ole Hansen, commodities strategist at Saxo Bank AS. The retreat in prices “has already attracted fresh demand today, highlighting the strength of underlying demand still lurking below, waiting for an opportunity.”
TD Securities’ Dan Ghali ascribed the price rally to “extreme FOMO,” referring to the fear-of-missing-out sentiment among investors, adding that gold’s ascent this time around is “overwhelmingly driven by the West.”
Precious metals have been on a tear this year, with gold registering a ninth straight week of gains. Prices are up more than 60% so far in 2025, underpinned by central-bank buying and inflows to exchange-traded funds. They’ve also benefited from soaring demand for havens in the face of geopolitical and trade tensions, rising fiscal and debt levels, and threats to the Federal Reserve’s independence.
Silver, meanwhile, has run even harder — surging around 80% this year — with gains driven by some of the same macro factors supporting gold. In London, a lack of liquidity sparked a worldwide hunt for the metal as benchmark prices soared above futures in New York.
Spot gold rose 1.9% to $4,331.81 an ounce as of 10:48 a.m. in New York, not far from an all-time high of $4,379.93 hit last week. The Bloomberg Dollar Spot Index was flat. Silver edged up 0.8% to $52.34 — after touching an all-time high of $54.4796 an ounce on Friday. Platinum and palladium both advanced.
Source: Bloomberg.com
