KUALA LUMPUR, Gold prices jumped back above the US$4,000-per-ounce mark on Friday, heading for an eighth consecutive weekly gain, after US President Donald Trump hinted at new tariffs on China — reigniting fears of a trade war and boosting demand for safe-haven assets.
Spot gold rose 0.8% to US$4,007.39 per ounce as of 11.18am ET (1518 GMT), while US gold futures for December delivery climbed 1.3% to US$4,024.40. The precious metal has advanced 3.2% so far this week after hitting a record high of US$4,059.05 on Wednesday.
Trump said there was “no reason” to meet China’s President Xi Jinping in South Korea in two weeks, adding that Washington is calculating a “massive” increase in tariffs on Chinese imports. The announcement triggered a swift selloff in equities and a renewed rally in gold.
“Trump heating up the trade war again will tank the dollar and boost safe-haven assets,” said independent metals trader Tai Wong, noting that gold’s swift rebound reflected heightened investor caution.
Analysts said gold’s ongoing rally is underpinned by strong central bank purchases, exchange-traded fund inflows, expectations of US interest rate cuts, and persistent geopolitical uncertainty — including concerns over a potential French government collapse and the ongoing US government shutdown. The US Federal Reserve is widely expected to cut rates by 25 basis points each in October and December.
“While a short-term pullback is possible after such a steep rise, we expect gold prices to continue trending higher over the next couple of years,” said Hamad Hussain, climate and commodities economist at Capital Economics. Adding to the rally, the US dollar slipped 0.6%, making dollar-denominated bullion more attractive to non-US investors.
Silver followed suit, rising 2.2% to US$50.21 per ounce after touching a record high of US$51.22 on Thursday. It has soared 70% so far this year, supported by concerns over a supply deficit and surging industrial demand.
“Silver’s backwardation is a loud signal — physical demand is crushing paper supply,” said Alex Ebkarian, COO at Allegiance Gold. “If this continues, silver staying above US$50 looks very realistic.” Platinum added 0.3% to US$1,622.61, while palladium gained 2.8% to US$1,445, with both metals also on track for weekly gains.
