The precious metal received support as trade tensions between the US and China showed signs of increasing again. In addition, expectations that the US Federal Reserve (FED) will soon cut interest rates also contribute to strengthening the increase of the precious metal.
At 10:25 p.m. (Vietnam time), the December gold futures on the COMEX exchange increased by 2.3%, to 4,093.5 USD/ounce. Silver prices also increased sharply, setting a new peak of 51.7 USD/ounce, then trading around 51.37 USD/ounce.
Over the weekend, the US announced that it would consider applying additional tariffs on imported goods from China, and expected to apply export control measures for some strategic software in early November. This move is said to be a response to Beijing's restrictions on exports of important minerals.
According to UBS expert Giovanni Staunovo, global trade continues to be a factor of special interest to the market: "Despite signs of temporary easing, the risk of additional tariffs still exists". He said that investment and gold purchase demand from central banks will continue to support prices, with a target of $4,200/ounce.
Goldman Sachs believes that silver prices may continue to increase in the medium term thanks to private investment cash flow, but warns that the risk of short-term fluctuations will be greater than gold.
In the currency market, investors now expect the Fed to cut interest rates by 25 basis points in both October and December, with a probability of 95% and 79.8%, respectively. FED Chairman Jerome Powell is scheduled to speak about economic prospects at the NABE annual meeting on October 15 (US time).
In addition to gold and silver, platinum prices increased by 3.3% to 1,639.5 USD/ounce, while palladium increased by 2.9% to 1,446.48 USD/ounce.
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