Gold Prices Stabilize at $4,381 per Ounce

SadaNews - Gold stabilized near a new record level, maintaining its support, despite market optimism over a decrease in global trade tensions and increasing hopes for the imminent reopening of the U.S. government.

The precious metal prices jumped by as much as 3.1% on Monday, peaking at $4,381.52 per ounce. Technical indicators, including the relative strength index, suggest that the strong upward trend that began in August may have exceeded its normal limits.

Investors were assessing the latest developments in the U.S.-China trade war. U.S. President Donald Trump stated that the United States "will be fine" with Beijing ahead of both parties returning to the negotiating table.

However, Trump, who is set to meet his Chinese counterpart Xi Jinping next week, renewed his threat to increase tariffs on Chinese goods "if an agreement is not reached" by November 1. In contrast, National Economic Council Director Kevin Hassett indicated a possibility of the government shutdown ending this week.

An Exceptional Year for Precious Metals

Precious metals have witnessed a sharp increase this year, with gold recording its ninth consecutive week of gains, and its prices have soared more than 65% since the beginning of 2025, supported by central bank purchases and flows into exchange-traded funds.

Gold has also benefited from growing demand for safe havens amid geopolitical and trade tensions, rising public debt levels, and threats to the independence of the U.S. Federal Reserve.

As for silver, it achieved even larger gains, rising over 80% this year, driven by the same factors supporting gold, in addition to a historic shortage in the London market.

The Gap Between London and New York Markets Narrows

Reference silver prices are currently trading at levels higher than futures in New York, prompting traders to ship the metal to the British capital to alleviate the supply shortage.

The gap between the two trading centers remains wide at about one dollar per ounce, although it has narrowed compared to the three-dollar difference observed last week.

Spot gold rose by 0.3% to $4,368.70 per ounce at 8:39 AM in Singapore, while the Bloomberg dollar index declined by 0.1%. Silver prices stabilized after a 1% increase on Monday, while platinum rose and palladium remained steady.