Gold Reaches Record High as Investors Seek Safety Amid Global Tensions

On: October 16, 2025 6:35 AM
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Gold prices climbed to a new record high on Thursday as investors rushed toward safe-haven assets amid global economic uncertainty and rising geopolitical tensions. Expectations of an upcoming U.S. interest rate cut and a weaker dollar also fueled the rally.

By 00:33 GMT, spot gold was trading 0.4% higher at $4,224.79 per ounce, after briefly touching an all-time high of $4,225.69. The metal has now gained about 61% since the start of the year, reflecting growing investor confidence in gold during times of instability.

Gold is traditionally seen as a secure investment when markets turn volatile, and its appeal strengthens when interest rates fall. The U.S. dollar index slipped 0.1%, hovering near a one-week low, making gold cheaper for investors using other currencies.

Tensions between the United States and China added to the market’s cautious mood this week. Washington criticized Beijing’s new restrictions on rare earth mineral exports, calling them a threat to global supply chains. Both sides also imposed port duties on each other’s ships, further straining trade relations.

Investors are now betting on a 25 basis-point interest rate cut by the U.S. Federal Reserve later this month, with another one expected in December — a move that typically boosts demand for gold.

Other precious metals also saw modest changes. Silver edged up 0.2% to $53.16 per ounce, after touching a record $53.60 earlier this week. Platinum gained 0.7% to $1,665.70, while palladium slipped 0.3% to $1,540.36.

Gold’s strong performance highlights its enduring role as a safe and reliable store of value when global uncertainty looms.

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