Gold Surges Past $4,300, Set for Best Week Since 2008 Amid Banking, Trade Jitters

Gold soared to a fresh all-time high above $4,300 an ounce on Friday, capping its strongest weekly rally in more than 17 years as mounting concerns over U.S. regional banks, escalating global trade tensions, and renewed hopes for interest rate cuts sent investors flocking to safe-haven assets. Spot gold climbed 0.9% to $4,362.39 per ounce as of 4:39 a.m. GMT, after touching a new record of $4,378.69 earlier in the session. U.S. gold futures for December delivery jumped 1.7% to $4,375.50. Bullion has surged about 8.6% this week, marking its best performance since September 2008, with prices setting new records in every session. Spot silver also joined the rally, rising 0.3% to $54.41 per ounce and notching an 8.2% weekly gain after hitting a record $54.35 earlier. “$4,500 could arrive as a sooner-than-expected target, but much may depend upon how long concerns about U.S.-China trade and the government shutdown linger over the market,” said Tim Waterer, Chief Market Analyst at KCM Trade. The latest leg higher in gold comes as China accused the U.S. of stoking panic over its rare earth export controls, while rejecting calls to reverse the curbs. Meanwhile, U.S. Federal Reserve Governor Christopher Waller signaled support for another rate cut, citing labor market concerns. Investors are now pricing in a 25-basis-point reduction at the Fed’s October 29-30 meeting, with another cut expected in December. Wall Street closed lower on Thursday, as renewed signs of stress in U.S. regional banks rattled investors already on edge over trade frictions. “The flare-up in U.S. regional bank credit concerns has given traders one more reason to buy gold,” Waterer added. Non-yielding bullion, which typically outperforms in a low interest rate environment, has soared more than 66% year-to-date, fueled by geopolitical tensions, aggressive rate-cut bets, central bank buying, de-dollarization, and robust inflows into exchange-traded funds. On the geopolitical front, U.S. President Donald Trump and Russian President Vladimir Putin agreed on Thursday to hold another summit on the war in Ukraine, adding another layer of uncertainty to global markets.