Overview
- Spot gold hit an all-time high of $4,378.69 before sliding more than 2% to about $4,217 after President Trump said 100% tariffs on Chinese goods would not be sustainable and signaled a meeting with Xi Jinping.
- Despite the pullback, the metal is still up roughly 7% for the week, putting it on course for its strongest weekly performance since 2008.
- Traders point to escalating U.S.–China trade frictions, a softer dollar, and expectations for easier U.S. policy after Fed Governor Christopher Waller backed another rate cut, with markets pricing a 25 bp move on Oct. 29–30 and another in December.
- Year-to-date gains near 60–65% have been reinforced by heavy institutional demand, with central banks buying about 14.3 million ounces and ETFs adding roughly 20.4 million ounces.
- The World Gold Council expects further support for prices, and major banks—along with a new HSBC outlook raising the 2025 average to $3,455—flag scenarios that could see gold approach $5,000 if dollar weakness and accommodative policy persist.