Gold Nears $4,100 as Renewed U.S.-China Trade Tensions Drive Safe-Haven Demand

Gold prices surged to fresh record highs in Asian trading on Monday, approaching the $4,100 per ounce mark as renewed U.S.-China trade tensions rattled markets and spurred strong demand for safe-haven assets.

Spot gold jumped 1.3% to $4,070.29/oz by 05:53 GMT, after touching an all-time high of $4,078.05 earlier in the session. U.S. gold futures climbed 1.6% to $4,089.45/oz, while silver also extended its rally to a new record high.

Trade Tensions Reignite Safe-Haven Rush

Prices surged after U.S. President Donald Trump reignited trade friction late Friday, announcing plans for 100% tariffs on Chinese imports and tighter export controls on critical technologies. The aggressive stance unnerved global investors, sending money flowing into gold and other traditional safe-haven assets.

Although Trump attempted to calm markets over the weekend—writing on Truth Social that investors should “not worry about China”—his remarks did little to fully ease nerves. Traders remained cautious amid fears of unpredictable policy shifts from Washington.

Beijing struck a defiant tone in response, saying it was “not afraid” of a trade war and would take “necessary measures” to defend its economic interests. The firm stance amplified concerns over a possible escalation that could dampen global trade growth and trigger renewed market volatility.

Gold’s Rally Extends on Policy and Geopolitical Risks

Gold has gained over 50% year-to-date, driven by expectations of lower U.S. interest rates, strong central bank buying, and safe-haven flows amid political and economic instability. Analysts noted that the combination of rising fiscal uncertainty, geopolitical tensions, and weakening global growth has reinforced gold’s appeal as a store of value.

The metal has also benefited from declining real yields and concerns about potential U.S. dollar weakness as the Federal Reserve continues to signal further rate cuts.

Silver, Platinum, and Copper Join the Rally

Silver futures climbed 2.4% to $51.7/oz, marking a new all-time high, supported by robust investment demand, tightening supply, and reports of a short squeeze in London markets. Platinum futures gained nearly 3% to $1,669.60/oz, while copper prices rose in tandem with improved Chinese trade data.

On the London Metal Exchange, benchmark copper futures advanced 1.5% to $10,572.75 per ton, and U.S. copper futures gained 1.7% to $4.98 per pound.

Chinese Trade Data Adds Support

Adding to the bullish tone for industrial metals, data from Beijing showed both exports and imports jumped sharply in September, defying expectations and suggesting resilience in trade activity despite tariff threats. Analysts said the stronger-than-expected figures may help cushion China’s economy in the short term, though escalating tensions with the U.S. pose risks ahead.

Outlook

While near-term profit-taking could emerge after record-breaking gains, analysts see structural factors—ranging from monetary easing to persistent geopolitical uncertainty—continuing to support gold’s upward trajectory. As one strategist noted, “the higher the trade tension and political risk, the stronger gold’s floor becomes.”