Gold prices climbed to a record high on Monday, driven by safe-haven demand on fresh U.S.-China trade concerns, while broader economic and political uncertainties and expectations of further U.S. interest rate cuts also lent support.
FUNDAMENTALS
* Spot gold was up 0.6% at $4,043.14 per ounce, as of 0059 GMT, after hitting an all-time high of $4,059.30 earlier in the day.
* U.S. gold futures for December delivery gained 1.5% to $4,059.60.
* Non-yielding bullion has surged 54% year-to-date, driven by geopolitical risks, central bank purchases, exchange-traded fund inflows, U.S. rate-cut expectations, and tariff-related economic concerns.
* Trump on Friday imposed additional tariffs of 100% on Chinese exports and announced new export controls on critical software effective November 1.
* On Sunday, China called Trump's latest tariffs on Chinese goods hypocritical and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.
* Trump softened his stance over the weekend, saying that the U.S. does not wish to "hurt" China.
* Trump blamed Democrats for his decision to lay off thousands of federal workers during the ongoing government shutdown, which began on October 1 and has delayed key economic data releases.
* Markets are pricing in a near-certain 25-basis-point rate cut this month, with another similar reduction expected in December.
* Federal Reserve Chair Jerome Powell is set to address the NABE annual meeting on Tuesday, which may provide fresh cues on monetary easing. Other Fed officials are scheduled to speak throughout the week.
* On the geopolitical front, several world leaders, including Trump, are meeting in Egypt on Monday to discuss ceasefire plans for Gaza.
* Elsewhere, spot silver was up 0.1% at $50.31 per ounce, platinum rose 2.6% to $1,628.5 and palladium gained 2.1% to $1,434.75.
* Goldman Sachs said on Sunday that silver prices were expected to rise in the medium term due to private investment flows, but warned of heightened near-term volatility and downside risks compared to gold.
FUNDAMENTALS
* Spot gold was up 0.6% at $4,043.14 per ounce, as of 0059 GMT, after hitting an all-time high of $4,059.30 earlier in the day.
* U.S. gold futures for December delivery gained 1.5% to $4,059.60.
* Non-yielding bullion has surged 54% year-to-date, driven by geopolitical risks, central bank purchases, exchange-traded fund inflows, U.S. rate-cut expectations, and tariff-related economic concerns.
* Trump on Friday imposed additional tariffs of 100% on Chinese exports and announced new export controls on critical software effective November 1.
* On Sunday, China called Trump's latest tariffs on Chinese goods hypocritical and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.
* Trump softened his stance over the weekend, saying that the U.S. does not wish to "hurt" China.
* Trump blamed Democrats for his decision to lay off thousands of federal workers during the ongoing government shutdown, which began on October 1 and has delayed key economic data releases.
* Markets are pricing in a near-certain 25-basis-point rate cut this month, with another similar reduction expected in December.
* Federal Reserve Chair Jerome Powell is set to address the NABE annual meeting on Tuesday, which may provide fresh cues on monetary easing. Other Fed officials are scheduled to speak throughout the week.
* On the geopolitical front, several world leaders, including Trump, are meeting in Egypt on Monday to discuss ceasefire plans for Gaza.
* Elsewhere, spot silver was up 0.1% at $50.31 per ounce, platinum rose 2.6% to $1,628.5 and palladium gained 2.1% to $1,434.75.
* Goldman Sachs said on Sunday that silver prices were expected to rise in the medium term due to private investment flows, but warned of heightened near-term volatility and downside risks compared to gold.
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