Gold Reaches All-Time High, Investors Flock to Safe-Haven Asset

Gold hit a new record high on Monday, climbing to over $4,000 per ounce as investors rushed to safe-haven assets amid fresh trade tensions between the US and China. Silver also reached an all-time high, while expectations of Federal Reserve rate cuts added fuel to the precious metals rally.

Spot gold jumped 0.7% to $4,044.29 per ounce by 0253 GMT, after touching a record peak of $4,059.30 earlier in the session. US gold futures for December delivery surged even higher, gaining 1.6% to $4,062.50.

The move past $4,000 marks a psychological milestone for gold, which has been on a tear as global economic uncertainty mounts. Trade friction between the world's two largest economies typically sends investors scrambling for assets that hold their value during turbulent times.

Silver wasn't far behind, spiking 2% to a record $51.52 per ounce. The white metal often follows gold's lead but can be more volatile due to its industrial uses alongside its role as a store of value.

The broader precious metals complex saw strong gains across the board. Platinum climbed 2.6% to $1,628.80, while palladium added 2.6% to reach $1,442.06.

For traders and investors, these moves signal growing concern about global economic stability. When gold breaks through major price levels like $4,000, it often attracts more buying from both institutional and retail investors who view rising prices as confirmation of the metal's safe-haven appeal.

The Federal Reserve's potential rate cuts also play a key role here. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making precious metals more attractive compared to bonds or savings accounts that pay interest.