Gold Continues Its Record Ascent Amid Rising Global Tensions

Gold prices surged strongly on Thursday, hitting new record highs, fueled by an escalating demand for safe-haven assets amidst intensifying global geopolitical and economic tensions. The nearest-term gold contract reached a new all-time high of $4,250 per ounce, gaining $77.30, or 1.84%, on the COMEX exchange. In a parallel move, the December silver contract rose by $1.402, or 2.73%, with silver also reaching a historic level of $52.545 per ounce.

This upward momentum is primarily attributed to the deepening trade tensions between the United States and China, compounded by the ongoing U.S. government shutdown. These factors are driving investors to precious metals for hedging against risk. Gold and silver also received an additional boost from increasing expectations for continued monetary easing by the Federal Reserve.

Comments from Federal Reserve board member Christopher Waller hinted at the possibility of further interest rate cuts to support a struggling labor market, a factor traditionally positive for precious metals. Weak U.S. economic data, including a sharp decline in the Philadelphia Fed’s business survey for October, reinforced these expectations, pressuring the dollar and increasing gold’s appeal.

Furthermore, precious metals continue to benefit from the general uncertainty pervading the global economic and political landscape. This includes persistent concerns related to U.S. tariffs, escalating geopolitical risks, and political instability in regions like France and Japan. Frequent critiques of the Federal Reserve’s independence by President Trump have also bolstered gold’s role as a systemic hedge. Purchases by Exchange-Traded Funds (ETFs) have contributed to this trend, as gold and silver holdings in these funds climbed to multi-year highs, underscoring robust institutional demand for safe havens.