Daijiworld Media Network – Singapore
Singapore, Oct 13: Silver prices surged close to a record high on Monday amid an unprecedented short squeeze in London and renewed US-China trade tensions, while gold soared to a new all-time peak. Platinum and palladium also climbed sharply, boosted by fears of potential White House tariffs on key precious metals.
Silver rose as much as 1.1%, nearing $51 an ounce — its highest in over four decades — while platinum and palladium each gained more than 2%. Gold breached a record level above $4,060 an ounce after marking its eighth consecutive weekly gain on Friday.
The rally has seen precious metals surge between 50% and 80% this year, driven by strong central bank purchases, increased ETF holdings, and US Federal Reserve rate cuts. Ongoing trade frictions between Washington and Beijing and political uncertainty in the US have also strengthened demand for safe-haven assets.
On Sunday, China urged the US to drop its tariff threats and resume talks, warning of retaliation if new measures proceed. US President Donald Trump, who last week floated a 100% tariff on Chinese goods, appeared more conciliatory over the weekend.
“It seems just when geopolitical and trade risks were diminishing tailwinds for gold, we’ve got this flare-up in US-China tensions,” said Kyle Rodda, analyst at Capital.com. “Trade volatility may go silent but it never disappears — that’s a really good thing for gold,” he added.
Traders remain wary as the US concludes its Section 232 investigation into critical minerals — including silver, platinum, and palladium — fueling fears that new tariffs could further tighten supplies. The squeeze in London has been intensified by a massive drawdown in available silver stocks, pushing benchmark prices there to unprecedented premiums over New York.
Some traders have even begun airlifting silver bars across the Atlantic — a move typically reserved for gold — to capitalize on the widening price gap between markets.
As of 8:12 a.m. in Singapore, spot gold traded at $4,028.28 per ounce after touching $4,060.01. Silver hovered above $50, platinum stood near $1,630, and palladium was around $1,445. The Bloomberg Dollar Spot Index remained steady after gaining about 1% last week.