On Wednesday (October 15, 2025), Gold prices (XAUUSD) soared once again, crossing the US$4,200 per troy ounce mark. The rising tensions between the United States and China, alongside the possibility of interest rate cuts by the Federal Reserve, have contributed to this increase.
In the late afternoon, Gold reached a price of US$4,218 per troy ounce, a remarkable jump of over US$76 or 760 pips.
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The escalating US-China relationship has raised concerns about a potential trade war between the two nations. Recently, US President Donald Trump announced an embargo on palm oil imports from China, following a steep increase in tariffs on all Chinese goods by 100%, effective from November 1.
In response, China has stated that it will retaliate should these new tariff measures be enacted.
The trade conflict between these two countries has the potential to slow down global economic growth, consequently boosting demand for Gold as a safe haven investment.
Meanwhile, Federal Reserve Chairman Jerome Powell indicated that the quantitative tightening program—characterized by the sale of bonds to reduce liquidity—would be forthcoming to a halt. As this program concludes, the Fed will no longer be draining liquidity from the economy. This move could signal a more aggressive approach to interest rate cuts by the Federal Reserve, adding further optimism for Gold.
