Gold shatter records amid U.S-China trade clash

October 13, 2025 (MLN): Gold prices soared to higher levels on Monday as investors flocked to safe-haven assets following escalating trade frictions between the United States and China.

Silver also surged to a record high, bolstered by similar drivers and tightening market conditions.

Spot gold was up 1.32%% at $4,068.69 an ounce as of [12:10 pm] PST, according to data reported by Mettis Global.

Benchmark U.S. gold futures for December delivery climbed 2.3% to $4,093.50 per ounce, while spot silver advanced 2.7% to an all-time peak of $51.70.

The rally came after President Donald Trump threatened to impose 100% tariffs on Chinese imports and declared new export controls on critical software, set to take effect November 1.

The move was a response to Beijing’s restrictions on rare earth elements and equipment a policy China defended as reasonable, though it refrained from implementing additional countermeasures.

Goldman Sachs noted that silver prices could continue rising in the medium term, supported by private investment inflows. However, the bank cautioned that silver remains more exposed to short-term volatility and downside risk than gold.

Non-yielding gold has gained roughly 53% so far this year, propelled by geopolitical uncertainty, robust central bank purchases, surging ETF inflows, and mounting expectations of Fed rate cuts.

Market participants are currently betting on a near-certain 25-basis-point reduction in October, followed by another in December.

Fed Chair Jerome Powell is slated to speak at the National Association for Business Economics (NABE) annual meeting on Tuesday, with markets watching closely for new policy signals.

Several other Fed officials are also scheduled to deliver remarks later in the week.

Meanwhile, President Trump attributed his decision to lay off thousands of federal workers during the ongoing government shutdown now stretching into its second week to congressional Democrats.

The shutdown, which began on October 1, has delayed the release of key economic data.

On the geopolitical stage, Trump and other global leaders are convening in Egypt on Monday to discuss potential ceasefire measures for Gaza.

Among other precious metals, platinum rose 2.9% to $1,635.35 per ounce, while palladium advanced 3.6% to $1,452.50.

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