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Gold prices surged to fresh record highs in Asian trading on Monday, nearing the $4,100-per-ounce threshold, as escalating trade tensions between the United States and China further fueled a rally that has yielded an 11% gain over the past month.
Spot gold hit an all-time high of $4,077.20 per ounce, rising 1.3% by 05:30 a.m. GMT, while U.S. gold futures climbed 1.6% to $4,089.45. Silver followed the same trend, advancing 2.7% to a record level above $51.67 per ounce.
Other precious metals also advanced on Monday, with platinum up nearly 3% to $1,669.60 per ounce and palladium rising to $1,484.66.
U.S. President Donald Trump on Friday threatened to impose tariffs of up to 100% on Chinese imports and tighten export controls on critical technology—remarks that reignited fears of a trade war, similar to the one that roiled global markets in April when he first announced broader tariffs and disrupted global supply chains.
Following China’s new rare earth export restrictions and Trump’s remarks, major global markets declined on Friday, with the sharpest losses seen on the U.S. tech-heavy Nasdaq, which fell 3.6%, while Japan’s Nikkei 225 slipped 1%. The Nikkei extended its losses on Monday, dropping another 1%.
Although the president later softened his rhetoric, telling markets to "not worry about China" and indicating that Washington was not preparing for immediate escalation, traders remained cautious about potential policy reversals.
Beijing also responded firmly on Monday, stating it was "not afraid" of a trade war and would take necessary measures to defend its interests.
The exchange revived concerns of renewed economic strain between the world’s two largest economies, further fueling demand for safe-haven assets.
Gold has risen over 55% since the beginning of the year, supported by sustained safe-haven demand—particularly through ETF inflows—expectations of lower Federal Reserve rates, and continued central bank purchases.
The U.S. government shutdown and France’s political crisis have added further momentum to the rally, marking gold’s strongest annual performance since 1979, when prices surged by 133.5%.
Gains in silver also reached unprecedented levels, with year-to-date increases surpassing 74.1%.
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