**Gold Prices Soar to All-Time High Amid US-China Trade Tensions**
*By Mudit Dube | Oct 13, 2025, 01:27 PM*
Gold prices have surged to an unprecedented high, driven by escalating trade tensions between the United States and China. As of 5:59 AM GMT, spot gold was trading at $4,043.14 per ounce, after reaching an all-time peak of $4,059.30 earlier in the day.
The sharp rise in gold prices reflects increased safe-haven demand, as investors seek stability amid growing global economic and political uncertainties. Additionally, expectations of interest rate cuts by the US Federal Reserve are fueling gold’s upward momentum.
**Market Response**
US gold futures for December delivery jumped over 1.5%, reaching $4,059.60. This marks a remarkable 54% increase in gold prices year-to-date, influenced by several factors including geopolitical risks, central bank purchases, inflows into gold-backed ETFs, and concerns over tariffs.
It’s important to note that gold, often referred to as “non-yielding bullion,” does not generate regular income like stocks, bonds, or savings accounts, yet continues to attract investors in uncertain times.
**Trade Dynamics**
The current spike in gold prices follows President Donald Trump’s imposition of heavy tariffs on Chinese imports. The US has introduced additional tariffs of 100% on Chinese goods and announced new export controls on critical software effective November 1.
China has condemned these measures as hypocritical while defending its own restrictions on rare earth elements and equipment exports, further intensifying trade tensions between the two superpowers.
**Economic Outlook**
Markets are increasingly anticipating a near-certain 25 basis point interest rate cut by the Federal Reserve this month, with a similar reduction likely in December. Federal Reserve Chair Jerome Powell is set to speak at the NABE annual meeting on Tuesday, which may provide further insights into upcoming monetary policy easing.
Meanwhile, several world leaders, including President Trump, are scheduled to meet in Egypt on Monday to discuss ceasefire plans for Gaza, as geopolitical tensions continue to escalate globally.
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The ongoing trade disputes and geopolitical uncertainties are expected to keep gold prices on an upward trajectory as investors continue to seek refuge in the precious metal.
https://www.newsbytesapp.com/news/business/gold-prices-soar-to-new-high-amid-us-china-trade-tensions/story
