Silver also hit an all-time high, following gold’s rally.
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Spot gold was up 1.4% at $4,075.24 an ounce, at 1033 GMT, after hitting a record high of $4,079.70 an ounce.
U.S. gold futures for December delivery jumped 2.4% to $4,094.70.
Trade tensions remain top of mind for markets, said Giovanni Staunovo, an analyst at UBS, adding that “although they have eased again between the US and China, the threat of additional 100% tariffs remains.”
“The persistence of solid investments and demand from central banks should further support gold. We are targeting a move towards $4,200 per ounce,” he added.
Spot silver jumped 1.5% to $51.03/oz, after hitting a record high of $51.70/oz, driven by factors similar to gold as well as a tightening spot market.
Goldman Sachs said on Sunday that silver prices were expected to rise in the medium term due to private investment flows, but warned of increased near-term volatility and downside risks relative to gold.
Bank of America raised its price forecasts for precious metals on Monday, raising its 2026 outlook for gold to $5,000 an ounce and for silver to $65 an ounce.
BofA is the first major bank to raise its gold price forecast to $5,000 per ounce for 2026.
On a technical basis, the relative strength index for gold and silver stands at 80 and 83, respectively, indicating that the metals are overbought.
Fixed-rate gold bullion has gained 53% since the start of the year, driven by geopolitical risks, massive gold purchases by central banks, exchange-traded fund inflows, expectations of Fed rate cuts and economic uncertainties related to tariffs.
On the monetary policy front, traders are now pricing in a 25 basis point cut in October and December, with a probability of 97% and 89%, respectively. FEDWATCH/
Fed Chairman Jerome Powell has a chance to provide his monetary policy advice when he speaks on the economic outlook at the NABE annual meeting on Tuesday.
Several Fed officials are also expected to speak throughout the week.
Platinum rose 3.4% to $1,641.21 and palladium gained 2.6% to $1,441.97.
Anushree Mukherjee reports from Bangalore; Editing by Joe Bavier
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