On Monday morning, gold and silver reached new record highs amid persistent trade tensions. Although Trump managed to calm markets slightly over the weekend, the chaotic actions of the U.S. administration continue to drive capital rotation into safe-haven assets independent of the dollar, such as gold. Prices are also supported by expectations of two additional 25 bp Fed rate cuts later this year — one at the end of October and another in early December. The market consensus still favors a continuation of Fed policy easing, potentially bringing rates down to around 3% by mid-next year.
The initial strong upward move followed threats of 100% U.S. tariffs on Chinese goods and new export control measures implemented in response to China’s rare-earth export restrictions. The ongoing U.S. government shutdown further delays data releases and sustains market uncertainty. Inflows into gold-backed ETFs remain a key pillar of the rally.
Gold is up 1.50% to $4,070, while silver gains 3.06% to $51.52.

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