Gold hits fresh record as silver short squeeze intensifies
Gold surged above US$4,060 an ounce as safe-haven demand soared, while a historic short squeeze sent silver near a 1980 record amid US–China trade jitters.
Bloomberg reported that gold surged to an all-time high on Monday (October 13), buoyed by haven demand and aggressive buying by central banks, as silver’s dramatic short squeeze continued to reverberate through global metals markets.
The yellow metal climbed above US$4,060 an ounce in early Asian trade, marking its eighth consecutive weekly advance, while silver held firm above US$50, nearing levels last seen during the 1980 boom. Platinum and palladium also gained more than 2% amid tightening market conditions and renewed geopolitical unease.
Precious metals power ahead
This year’s rally across the precious metals complex has been extraordinary, with gold, silver, platinum and palladium all rising between 50% and 80%. Analysts attribute gold’s sustained strength to heavy central-bank accumulation, robust inflows into exchange-traded funds, and the US Federal Reserve’s rate-cut cycle.
Lingering US–China trade frictions, concerns over the Federal Reserve’s autonomy, and uncertainty from Washington’s budget deadlock have further driven investors towards safe-haven assets.
“Just when geopolitical risks appeared to be easing, US–China tensions have reignited support for gold,” said Kyle Rodda, market analyst at Capital.com. “Even when trade disputes quieten down, volatility never vanishes, and that’s always favourable for gold.”
Silver squeeze shakes the market
Silver’s ascent has been amplified by a historic short squeeze in London, triggered by dwindling inventories and speculation that the White House may extend tariffs on critical minerals. A massive drawdown of available stockpiles has sent benchmark London prices soaring above those in New York, forcing traders to pay hefty premiums, and even ship silver bars across the Atlantic by air to capitalise on arbitrage opportunities.
The squeeze has rekindled memories of the 1980 silver mania, when prices peaked at US$52.50 an ounce.
Geopolitics add fuel to the rally
Tensions between Washington and Beijing also injected fresh momentum into safe-haven buying. Over the weekend, China urged the US to drop new tariff threats, warning of retaliation if additional duties are imposed. President Donald Trump, who recently floated a 100% tariff on Chinese goods, appeared to strike a softer tone in subsequent comments.
Traders are now awaiting the outcome of the US administration’s Section 232 review on critical minerals, a probe that includes silver, platinum, and palladium, amid concerns that fresh levies could tighten supply chains further.
At 8:12 a.m. in Singapore, spot gold traded at US$4,028.28 an ounce, while silver rose 0.7% to stay above US$50. Platinum hovered near US$1,630, and palladium around US$1,445. The Bloomberg Dollar Spot Index was little changed after a 1% rise last week.
