Gold rose to a new record high as investors flocked to the precious metal despite signs of easing trade tensions and the possibility of reopening the US government. US President Donald Trump said the United States would “be fine” with China before the two sides return to the negotiating table, while National Economic Council Director Kevin Hassett indicated the government shutdown could end this week. Although these developments were supposed to weaken demand for safe havens like gold, traders took advantage of the sell-off that took place on Friday to increase their purchases of the precious metal, pushing prices to a record high of $4,381.52 an ounce, surpassing the previous high of $4,379.93 recorded last week. Heavy buying flows drive prices to record levels. “There are only buyers in the gold market,” said Ole Hansen, commodity analyst at Saxo Bank AS, adding that the drop in prices on Friday “has already attracted new demand today, highlighting the strength of latent demand waiting for the opportunity to buy.” Dan Ghaly of TD Securities attributed the rise to “extreme fear of missing out” (FOMO), noting that gold’s rise this time is “largely driven by investors in the West.” Strong gains for precious metals since the start of the year Precious metals have seen a strong rally this year, as gold recorded its ninth straight week of gains, and its prices have jumped more than 65% since the start of 2025, supported by central bank purchases and exchange-traded fund flows. Gold also benefited from increased demand for safe havens in the face of geopolitical and trade tensions, high levels of deficit and debt, and threats to the independence of the US Federal Reserve. On the other hand, silver has had a stronger performance, rising more than 80% this year, driven by the same factors that supported gold. In London, the lack of liquidity led to a global rush to buy the metal, with standard prices for spot contracts exceeding their counterparts on the New York Stock Exchange. Spot gold rose 2.6% to $4,361.55 an ounce by 4:09 p.m. in New York. The Bloomberg Dollar Index also rose slightly. Silver rose 1% to $52.50, after hitting a record high of $54.4796 an ounce on Friday. Platinum and palladium also recorded gains during the session.
Gold prices rise and break previous record levels
