Gold Hits Fresh Record as Traders Buy Despite Easing Tension
Gold advanced to a fresh record high 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 government shutdown might end this week.
The developments would have dampened demand for havens such as gold, but traders instead took advantage of a selloff Friday to buy more bullion, sending the metal to an all-time high of $4,381.52, surpassing a previous peak of $4,379.93 hit last week.
There’s nothing but buyers in the gold market, said Ole Hansen, commodities strategist at Saxo Bank AS. Friday’s 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 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 65% 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 more than 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 2.6% to $4,361.55 an ounce as of 4:09 p.m. in New York. The Bloomberg Dollar Spot Index inched up. Silver edged up 1% to $52.50 — after touching an all-time high of $54.4796 an ounce on Friday. Platinum and palladium both advanced.
Source : Bloomberg.com
