Gold holds near record high even as US-China trade tensions ease

Bullion surged as much as 3.1% on Monday to a peak of $4,381.52 an ounce.

Gold held near a record high, finding support despite optimism global trade tensions are easing and hopes the US government will reopen soon.

Bullion surged as much as 3.1% on Monday to a peak of $4,381.52 an ounce. Technical indicators — including the relative strength index — show that the ferocious rally that began in August may have run too far.

Investors were weighing the latest developments in US-China relations. President Donald Trump said the US will “be fine” with Beijing before the two sides return to the negotiating table. Still, the US leader — due to meet President Xi Jinping next week — reiterated his threat to follow through on a tariff hike on Chinese goods “if there isn’t a deal” by Nov. 1. Meanwhile, National Economic Council Director Kevin Hassett suggested the government shutdown might end this week.

Precious metals have been on a tear this year, with gold registering a ninth straight week of gains. Prices are up more than 65% so far in 2025, underpinned by central-bank buying and inflows to exchange-traded funds. They’ve also benefited from soaring demand for havens in the face of geopolitical and trade tensions, rising fiscal debt levels and threats to the Federal Reserve’s independence.

Silver, meanwhile, has run even harder — surging more than 80% this year — with gains driven by some of the same macro factors supporting gold, as well as a historic squeeze in the London market.

Benchmark prices for silver are trading above New York futures, prompting traders to ship metal to the UK capital to ease tightness. The spread between the two trading hubs remains wide at about $1 an ounce, though that’s much narrower than a gap of as much as $3 last week.

Spot gold was up 0.3% to $4,368.70 an ounce at 8:39 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1%. Silver was little changed after closing 1% higher on Monday. Platinum gained, while palladium steadied.