An ounce of gold rose above $4,100 for the first time and reached an all-time high.
Gold prices started the new week with a historic record, with US-China trade tensions flaring up again and expectations of interest rate cuts by the US Federal Reserve (Fed).
An ounce of gold rose above $4,100 for the first time and reached an all-time high.
Spot gold rose 2.4% to $4k 114.31 as of 19.17 CET; It broke the record with 4 thousand 116.77 dollars on the day.
Gold, which has increased 56% in value this year, crossed the $4k threshold last week. Behind this price increase are economic and geopolitical uncertainties, expectations of interest rate cuts and strong purchases by central banks.
IT COULD BREAK A NEW RECORD IN 2026
Phillip Streible, chief market strategist at Blue Line Futures, stated in his statement to Reuters that the rise could continue and said: “Gold could easily maintain its upward momentum. It could rise above $5K by the end of 2026.”
According to Streible, steady purchases by central banks, strong inflows into gold-backed ETFs, US-China trade tensions and the possibility of lower interest rates will provide structural support to the market.
US-China tensions continue to increase
US President Donald Trump effectively ended the trade ceasefire between the two countries with his announcement on Friday.
While Trump threatened to impose additional 100% tariffs on goods from China to the United States, he also said he would impose new export restrictions on “all critical software” from November 1.
The US leader also argued that his planned meeting with Chinese President Xi Jinping in South Korea this month was “no longer necessary”, but the meeting has not yet been officially cancelled.
On the other hand, China defends export restrictions on rare earth elements and equipment as a “legitimate response to the aggressive stance of the United States.” Although the new tariffs were not announced, Beijing emphasized its determination to face Washington's trade pressure.
While Capital Economics analysts said, “This latest dispute could still subside if common sense is exercised,” there is “a risk that the tensions could turn into a deeper economic rift” if neither side backs down.
EXPECTATION OF REDUCTION IN PROFITS
The market prices the probability of a 25 basis point rate cut at the Fed's October meeting at 97% and 100% in December. Gold, which does not yield interest, will become more attractive to investors in a low interest rate environment.
Bank of America and Société Générale analysts predict that gold could reach $5,000 by 2026. Standard Chartered predicts an average of $4,488 for 2026.
WHAT IS THE STATUS FOR SILVER AND PLATINUM?
In addition to gold, silver also broke records. Spot silver rose 3.1% to $51.82; It hit an all-time high of $52.07 during the session.
Platinum traded at $1,666 with a 5% gain and palladium traded at $1,496.52 with a 6.5% gain.
Technical indicators show that both precious metals have entered “overbought” territory; The relative strength index (RSI) is at 80 for gold and 83 for silver.
