FX.co ★ Gold Hovers Near Record Peak

Gold prices experienced an increase on Monday, reaching $4,050 per ounce, nearing a record high seen earlier in the day. This surge in value is attributed to escalating US-China trade tensions and a broader atmosphere of economic uncertainty, which have heightened the demand for safe-haven assets. Last Friday, President Trump threatened the imposition of additional 100% tariffs on Chinese exports, along with new export controls targeting critical software set to commence on November 1. However, he later moderated his stance, emphasizing that the United States aims to support China rather than cause harm. Concurrently, Beijing has justified its recent restrictions on rare earth exports, cautioning that it is preparing corresponding measures in response to any newly imposed US tariffs. Adding to market concerns is the ongoing US government shutdown, which has left markets without vital economic indicators crucial for evaluating the economy's performance. Nonetheless, there is a general expectation among traders that the Federal Reserve will implement additional 25 basis point rate cuts at each of its remaining meetings this year. On a geopolitical note, President Trump announced on Sunday that the conflict in Gaza has concluded as he prepares to visit Israel.