Gold settled near a new record high and held its support despite markets’ optimism about an easing of global trade tensions and growing hopes that the US government will soon reopen. Prices of the precious metal rose as much as 3.1% to a high of $4,381.52 an ounce on Monday. Technical indicators, including the relative strength index, suggest that the strong bull run that began in August may have exceeded its normal limits. Investors assessed the latest developments in the US-China trade war. US President Donald Trump said the United States would “be fine” with Beijing before the two sides return to the negotiating table. However, Trump, who is scheduled to meet his Chinese counterpart Xi Jinping next week, renewed his threat to raise tariffs on Chinese goods “if a deal is not reached” by November 1. On the other hand, Kevin Hassett, director of the National Economic Council, indicated the possibility of the government shutdown ending this week. Also read: The Trump administration warns China against targeting companies that work with the United States. An exceptional year for precious metals. Precious metals have seen a sharp rise this year, as gold posted its ninth consecutive 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 increasing demand for safe havens in the face of geopolitical and trade tensions, high levels of public debt and threats facing the US Federal Reserve and its independence. As for silver, it posted bigger gains, rising more than 80% this year, driven by the same factors that supported gold, in addition to a historic shortage in the London market. Narrowing gap between London and New York markets Benchmark silver prices are currently trading at higher levels than futures in New York, prompting traders to send the metal to the British capital to ease tight inventories. The gap between the two trading centers is still wide, at about $1 an ounce, although it has narrowed compared to the difference that reached $3 last week. Spot gold was up 0.3% at $4,368.70 an ounce by 08:39 in Singapore, while the Bloomberg Dollar Index was down 0.1%. Silver prices stabilized after rising 1% on Monday, while platinum rose and palladium stabilized.
Gold prices stabilize near their highest levels amid anticipation of trade talks
