Gold prices (GC=F) rose to another record high on Thursday as US-China frictions and bets the Federal Reserve will press on with monetary easing supported demand.
Bullion has risen more than 5% so far this week and touched a peak above $4,245 an ounce on Thursday, extending its stellar rally since mid-August.
The buying spree has spread to other precious metals, with silver surging more than 3% on Wednesday as availability in the London market remained tight.
It comes as president Donald Trump declared that the US was now locked in a trade war with China, with traders worried about prolonged damage to the global economy. The ongoing US government shutdown has also aided bullion.
At the time of writing, gold futures had gained 1%, to $4,245.60 per ounce, while the spot price had climbed 0.8% to $4,234.41 per troy ounce, a record high.
“The commentary from the Fed that emphasised higher prospects of rate cuts going forward is supportive, while US president Donald Trump turning around and labelling this a trade war is clearly providing a pretty strong impetus for gold,” said OANDA senior analyst Kyle Rodda.
Trump declared the US was locked in a trade war with China, fuelling fears of sustained economic disruption, adding to the appeal of gold. Treasury secretary Scott Bessent, however, signalled a more dovish tone, suggesting a pause in new tariffs on Chinese goods to defuse tensions over critical minerals.
At the same time, a looming US federal government shutdown and the broader prospect of monetary easing by the Federal Reserve have reinforced investor demand for gold.
Analysts at ANZ Group Holdings, including Soni Kumari and Daniel Hynes, described gold’s rise as an “extraordinary rally,” with no immediate signs of slowing. They raised its year-end forecast to $4,400 per ounce, with a peak near $4,600 expected by June 2026.