Gold and silver reach historic highs as trade tensions and expectations of interest cuts in the US reinforce demand for safe assets
O gold reached this Monday (13) a historic recorddriven by the search for assets considered safe havens amid growing commercial tensions between United States and Chinain addition to expectations of cuts in interest rates by Federal Reserve (Fed). A talk also registered a historic high, reflecting the same scenario of risk aversion and demand for precious metals.
O spot gold advanced 0.7% to $4,044.29 per ouncereaching $4,059.30 at the start of the sessionaccording to data from 02:53 GMT. Already the gold futures contracts for december rose 1.6% to US$4,062.50.
The sudden increase in prices is directly linked to the recent actions of the American president Donald Trumpwhich on Friday announced 100% tariffs on Chinese products imported into the USin addition to new export controls for essential software starting November 1. These measures were a response to China’s restrictions on rare earth elements and equipmentwhich Beijing defended as justified, but without imposing new duties on American products.
“It’s interesting because recent developments in the Middle East have been a tailwind for the gold market, but now we have this resurgence of risks due to inflamed trade tensions between the US and China,” he said. Kyle Roddaanalyst at Capital.com.
A spot silver rose 2%, reaching US$51.52 per ouncedriven by the same scenario that benefits gold, in addition to spot market rigidity. O Goldman Sachs pointed out that silver prices should continue to rise in the medium term due to private investment flows, although the bank highlights that volatility in the short term could be greater, with downside risks compared to gold.
Gold accumulated gains of 54% in the yearsupported by factors such as geopolitical risks, strong purchases by central banks, inflows into exchange-traded fundsexpectations of Fed interest rate cuts and economic uncertainties caused by trade tariffs. Markets are already pricing a 25 basis point reduction in interest rates in October is almost certainfollowed by another similar cut in December, according to the FedWatch.
The Fed Chairman, Jerome Powellmust speak at the annual meeting of the MUST NOT on Tuesday, bringing potential impact to investors’ perception of monetary policy. Other Fed members will also have speeches throughout the week, keeping the market’s focus on the direction of interest rates.
In the American domestic scenario, Trump once again blamed the Democrats by the decision of lay off thousands of federal employees during the government shutdown, which began on October 1 and caused delays in the release of key economic data.
In addition to trade and economic issues, markets also reacted to geopolitical developments in the Middle East. Several world leaders, including Trump, met in Egypt on Monday to discuss ceasefire plans in Gazawith the expectation of progress in resolving the conflict.
Other precious metals also posted strong gains:
- Platinum rose 2.6% to US$1,628.80
- Palladium advanced 2.6% to US$1,442.06
The historical movement of gold and silver thus reflects the combination of trade tension, geopolitical uncertainties and expectations of monetary stimulusconsolidating precious metals as a safe alternative in times of global volatility.
With information from Reuters*
Source: https://www.ocafezinho.com/2025/10/13/metais-preciosos-disparam-com-conflito-eua-china/
