SINGAPORE – Investors in Singapore have joined the global rush to buy gold since the start of 2025, as mounting geopolitical tensions and expectations of US interest rate cuts drive demand for the safe-haven metal. <\/p>\n
Gold prices hit a fresh record high on Oct 13, driven by safe-haven demand on reignited US-China trade tensions which drove Asia stock markets down. Silver\u00a0also surged to another all-time high.<\/p>\n
US President Donald Trump on Friday (Oct 10) imposed 100 per cent tariffs on Chinese goods to the United States and announced new export controls on critical software effective Nov 1 in response to China\u2019s curbs on rare earth elements.<\/p>\n
Spot\u00a0gold\u00a0was up 0.7 per cent to US$4,044.29 per ounce as at 10.53am Singapore time, after hitting an all-time high of US$4,059.30 earlier in the morning. To date in 2025, spot gold has soared 54 per cent, after a 27 per cent gain in 2024.<\/p>\n
<\/p>\n Spot\u00a0silver\u00a0jumped 2 per cent to a record high<\/p>\n <\/a> of US$51.52 an ounce, driven by similar factors as gold.<\/p>\n Gold rallies when interest rates are expected to ease because the precious metal becomes more attractive compared with interest-bearing assets. Lower rates, as well as rising geopolitical uncertainty, also make the US dollar more volatile, raising gold\u2019s appeal as a safe and more attractive store of value.<\/p>\n The US government shutdown, which hit its 12th day on Oct 12, has postponed the release of key economic indicators from the world\u2019s biggest economy, raising the risk of higher unemployment and further economic disruption in the world\u2019s largest economy.<\/p>\n That\u2019s expected to influence the Federal Reserve\u2019s next interest rate decision, as the central bank adjusts rates based on inflation and unemployment. The market is now pricing in a 25-basis-point cut at the Fed\u2019s next monetary policy meeting on Oct 28 and 29, with an additional 25-basis-point cut anticipated in December, according to Bloomberg. <\/p>\n In an Oct 6 note, UOB head of market strategy Heng Koon How noted that the recent rally in gold prices has been driven in part by a surge in retail demand globally for gold-related investment products, such as gold-backed exchange-traded funds (ETFs) and futures, on top of physical gold and gold certificates. <\/p>\n Retail investors in Singapore are among those who have raised their gold-related holdings.<\/p>\n The SPDR Gold Shares ETF, which is listed in both Singapore and the US, has risen steadily since the start of 2025. Other gold ETFs available to retail investors, such as iShares Gold Trust, abrdn Physical Gold Shares ETF and GraniteShares Gold Trust, which are listed in the US, have also risen.<\/p>\n