Gold hits new high as trade tensions between US, China escalate

Gold bars

Gold prices climbed to a fresh record high on Thursday as investors flocked to safe-haven assets amid escalating trade tensions, the ongoing US government shutdown, and growing expectations of Federal Reserve rate cuts.

December gold futures rose 1%, or $42.3, to $4,243.2 per ounce after touching a record high of $4,255.4 earlier in the session. Spot gold gained 0.4% to trade at $4,225.09 per ounce, easing from an all-time peak of $4,241.77.

The dollar index slipped 0.2% to 98.61 as of 08:26 a.m. Mecca time.

Elsewhere, December silver futures rose 1.35% to $52.06 per ounce. Spot platinum added 0.4% to $1,660.15, while palladium slipped 0.5% to $1,528.25.

US Treasury Secretary Scott Bessent said Washington has additional measures ready against China if Beijing proceeds with tightening export restrictions on rare earth metals. He added the US is prepared to impose tariffs on China over its Russian oil purchases, provided European partners align with Washington, Reuters reported.