Gold records its highest historical levels, exceeding $4,044

Gold rose to a new record high today, supported by demand for safe havens amid renewed trade tension between the United States and China and expectations of the Federal Reserve (the US central bank) reducing interest rates.

Silver also rose to its highest level ever.

Gold in spot transactions increased 0.7 percent to $4,044.29 per ounce by 0253 GMT, after hitting a record high of $4,059.30 earlier in the session.

US gold futures for December delivery rose 1.6 percent to $4,062.50.

“It’s exciting, because developments in the Middle East recently have been pushing gold lower, but now we have a resurgence of risks due to the simmering trade tension between the United States and China,” said Kyle Rodda, an analyst at Capital.com.
Silver jumped in spot transactions by two percent to a record level of $51.52 per ounce, influenced by the same factors that move gold.

Gold, which does not generate returns, has risen 54 percent since the beginning of the year until now, driven by geopolitical risks, along with strong buying by central banks, exchange-traded fund flows, expectations of lower US interest rates, and economic tension resulting from tariffs.

According to the CME Group’s Fed Watch tool, markets almost certainly expect a 25 basis point rate cut in October, followed by a similar cut in December.