Gold surges past $4,300, heads for strongest week since 2008

By Al Mayadeen English
Source: News websites
17 Oct 2025 13:58

Gold rallies above $4,300/oz amid rate cut expectations, US bank fears, and geopolitical tensions, marking its best week in 17 years.

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1 Ounce Fine Gold Coins are displayed in the safe deposit boxes room at the Pro Aurum gold house in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader)

Gold prices soared beyond $4,300 per ounce on Friday, achieving a new record and marking the metal’s strongest weekly performance since the 2008 financial crisis.

Investors flocked to the safe-haven asset amid rising concerns over US regional banks, global trade tensions, and mounting expectations of interest rate cuts.

As of 0615 GMT, spot gold was up 0.8% at $4,359.31, after hitting a fresh all-time high of $4,378.69. US gold futures for December delivery also surged, rising 1.6% to $4,372.10.

With an 8.6% gain this week, gold is on track for its best weekly rise since September 2008, hitting new highs in each trading session.

Silver tracks gold rally amid market short squeeze

Spot silver also rose 0.1% to $54.26 per ounce, and was poised for an 8% weekly increase. Earlier in the session, it touched a record high of $54.35, buoyed by gold’s momentum and a short squeeze in the spot market.

According to Tim Waterer, Chief Market Analyst at KCM Trade, $4,500 is emerging as a near-term target for gold, depending on how long US-China trade tensions and government shutdown concerns persist.

China has accused the United States of stoking panic over rare earth controls and rejected calls to ease its export restrictions.

Comments from US Federal Reserve Governor Christopher Waller have further fueled expectations of policy easing. Citing a cooling labour market, Waller supported the case for another rate cut.

Markets now anticipate a 25-basis-point cut at the Fed's October 29–30 meeting, with another reduction expected in December. In this environment, non-yielding bullion continues to shine, benefiting from declining interest rates.

Financial stress and geopolitical risks boost gold's appeal

Adding to market jitters, Wall Street closed lower on Thursday amid fresh signs of instability in US regional banks. These concerns have only strengthened gold’s position as a preferred asset in times of financial stress.

So far this year, gold has gained over 65%, supported by a mix of geopolitical tensions, central bank buying, de-dollarisation, and rising ETF inflows.

On the geopolitical front, US President Donald Trump and Russian President Vladimir Putin agreed to hold another summit to discuss the ongoing war in Ukraine. Meanwhile, Western powers continued to pressure Moscow by targeting major Russian oil firms with fresh sanctions.

Other precious metals were mixed. Platinum dipped 0.7% to $1,699.45, while palladium slipped 0.2% to $1,611.24. Despite the daily losses, both metals were still on course to finish the week higher.