Gold and silver surged to record highs on Monday, driven by safe-haven demand amid renewed US-China trade tensions and expectations of Federal Reserve interest rate cuts. Spot gold rose 1.5 per cent to $4,078.05 per ounce, while US gold futures for December delivery jumped 2.3 per cent to $4,093.50. Spot silver climbed 2.7 per cent to $51.70 per ounce, boosted by tight market conditions and strong investment flows. The rally follows US President Donald Trump's threat of 100 per cent tariffs on Chinese goods and new export controls on critical software, responding to China's restrictions on rare earth elements. Analysts note that heightened trade risks have reignited safe-haven demand that had eased earlier amid Middle East developments. Non-yielding bullion has gained 53 per cent year-to-date, supported by central bank buying, exchange-traded fund inflows, rate cut expectations, and economic uncertainty. Markets are pricing in near-certain 25-basis-point rate cuts in October and December, with Fed Chair Jerome Powell set to speak at the NABE annual meeting on Tuesday. Other precious metals also advanced, with platinum up 2.9 per cent to $1,635.35 and palladium rising 3.6 per cent to $1,452.50. Attribution: Reuters Subediting: Y.Yasser
