Gold prices soared past the $4,200 per ounce mark for the first time ever on Tuesday, driven by intensifying U.S.-China trade tensions and growing expectations of interest rate cuts from the U.S. Federal Reserve.
In early New York trade, gold futures rose 1.3% to $4,217.20 an ounce, while spot gold gained 0.8% to $4,142.63, marking fresh lifetime highs for both contracts.
Analysts say investors are flocking to safe-haven assets as geopolitical uncertainty deepens amid Washington-Beijing trade disputes and a prolonged U.S. government shutdown. The precious metal also found support from Fed Chair Jerome Powell’s recent comments, which reinforced market bets on further monetary easing.
The rally comes as the dollar weakens, making gold more attractive for foreign investors. Meanwhile, silver futures also climbed 1.7% to $51.47 per ounce, buoyed by safe-haven demand and a tightening liquidity situation in the London market.
With gold’s unstoppable momentum and central banks continuing to stockpile reserves, traders believe the metal could stay elevated in the near term as global markets brace for further volatility.
