Washington: Gold and silver prices have surged to unprecedented levels, driven by escalating trade tensions between the United States and China, along with expectations of upcoming U.S. Federal Reserve interest rate cuts.

Spot gold rose 0.7 percent to $4,044.29 per ounce, reaching an intraday peak of $4,059.30. U.S. gold futures for December delivery climbed 1.6 percent to $4,062.50. The surge comes after President Donald Trump announced 100 percent tariffs on Chinese goods and new export controls on critical software, effective November 1, in response to China’s restrictions on rare earth elements and equipment. Analysts say geopolitical uncertainty has renewed investor interest in safe-haven assets like gold.

Silver also reached an all-time high, with spot prices jumping 2 percent to $51.52 per ounce. Tightness in the market and increased investment demand have contributed to the rise. Analysts from Goldman Sachs noted that while silver is expected to maintain medium-term gains, short-term volatility and downside risks remain higher compared to gold.

Gold has risen 54 percent this year, boosted by central bank purchases, inflows into exchange-traded funds, economic uncertainty, and expectations of Federal Reserve rate cuts. Markets are currently pricing in at least two 25-basis-point rate cuts by December, with Fed Chair Jerome Powell expected to provide further guidance at the upcoming NABE meeting.

The surge in precious metals highlights investors’ growing preference for safe-haven assets amid ongoing economic uncertainty and geopolitical tensions.