Gold Surges Past $4,300 an Ounce, Poised for Strongest Weekly Gain in Five Years

Gold prices climbed beyond $4,300 per ounce on Friday, positioning for their best weekly performance in five years as investor demand for safe-haven assets strengthened amid renewed concerns over U.S. regional banks, rising global trade tensions, and expectations of further interest rate cuts.

As of 02:33 GMT, spot gold rose 0.3% to $4,336.18 per ounce after touching a new record of $4,378.69 earlier in the session. U.S. gold futures for December delivery gained 1% to $4,348.70. The metal has advanced roughly 8% this week, marking its strongest performance since March 2020 and achieving a record high in every trading session.

Spot silver slipped 0.7% to $53.86 per ounce but remained on course for a weekly gain, having reached a record $54.35 earlier in the day, supported by gold’s rally and a short squeeze in the spot market.

KCM Trade Chief Market Analyst Tim Waterer noted that “$4,500 could be reached sooner than anticipated,” depending on how long U.S.-China trade disputes and U.S. government shutdown risks continue to weigh on investor sentiment.

Tensions between China and the United States escalated after Beijing accused Washington of inciting panic over rare earth export controls, rejecting U.S. calls to ease restrictions. Meanwhile, Federal Reserve Governor Christopher Waller signaled support for another rate cut due to labor market concerns.

Market participants are pricing in a 25-basis-point rate reduction at the Federal Reserve’s Oct. 29–30 meeting, with another cut expected in December. On Thursday, Wall Street ended lower as renewed stress in U.S. regional banks unsettled markets already cautious about U.S.-China trade frictions.

“The flare-up in regional bank credit concerns has given traders one more reason to buy gold,” Waterer added.

Non-yielding bullion, which typically benefits from lower interest rates, has risen over 65% year-to-date. The surge has been fueled by geopolitical instability, expectations of aggressive monetary easing, central bank gold purchases, de-dollarization trends, and strong exchange-traded fund inflows.

On the geopolitical front, U.S. President Donald Trump and Russian President Vladimir Putin agreed to hold another summit to discuss the ongoing conflict in Ukraine. Western nations continued tightening sanctions on Russia’s oil sector, with the United Kingdom targeting major Russian energy companies.

Platinum declined 0.7% to $1,701.00, and palladium eased 0.4% to $1,607.93, though both metals were still on track to end the week higher.