A historic record for gold: It surpassed $4,100 for the first time

Gold prices started the week at a record high amid renewed US-China trade tensions and expectations of a US Federal Reserve (Fed) interest rate cut.

Gold hit an all-time high, exceeding $4,100 per ounce for the first time.

Spot gold rose 2.4 percent to $ 4,114.31 as of 19:17 GMT, breaking a record of $4,116.77 during the day.

Gold, which has gained 56% this year, surpassed the $4,000 threshold last week. This price increase is driven by geopolitical and economic uncertainties, interest rate cut expectations, and strong central bank purchases.

MAY BREAK NEW RECORD IN 2026

Phillip Streible, chief market strategist at Blue Line Futures, told Reuters the rally could continue, saying, "Gold could easily maintain its upward momentum. It's possible it could break above $5,000 by the end of 2026."

According to Streible, stable central bank purchases, strong inflows into gold-backed ETFs, US-China trade tensions and the possibility of lower interest rates are providing structural support to the market.

US-China tensions continue to escalate

US President Donald Trump effectively ended the trade truce between the two countries with his statements on Friday.

Trump threatened to impose 100% tariffs on goods coming from China to the US, and said he would impose new export restrictions on “all critical software” starting November 1.

The US President also argued that his planned meeting with Chinese President Xi Jinping in South Korea this month was “now unnecessary,” although the meeting has not yet been officially cancelled.

China, for its part, has defended its export restrictions on rare earths and equipment as a "legitimate response to the US's aggressive stance." While no new tariffs have been announced, Beijing has emphasized its resolve to resist Washington's trade pressure.

“This latest dispute could still de-escalate if common sense is exercised,” Capital Economics analysts said, but there is a “risk of tensions escalating into a deeper economic rift” if neither side backs down.

INTEREST RATE REDUCED EXPECTATION

Markets are pricing in a 97% chance of a 25 basis point rate cut at the Fed's October meeting and a 100% chance of a December rate cut. Gold, which doesn't pay interest, becomes more attractive to investors in a low interest rate environment.

Analysts at Bank of America and Société Générale predict that gold could reach $5,000 in 2026. Standard Chartered, on the other hand, forecast an average price of $4,488 for 2026.

WHAT IS THE SITUATION WITH SILVER AND PLATINUM?

Silver also broke records, alongside gold. Spot silver rose 3.1 percent to $51.82, reaching an all-time high of $52.07 during the session.

Platinum rose 5 percent to $1,666, while palladium rose 6.5 percent to $1,496.52.

Technical indicators suggest that both precious metals have entered the “overbought” territory, with the relative strength index (RSI) at 80 for gold and 83 for silver.