S'pore investors join gold rush as prices hit record high

Rising geopolitical tensions, expectations of rate cuts drive demand for safe-haven metal

- Kang Wan Chern Deputy Business Editor

Gold rallies when interest rates are expected to ease because the precious metal becomes more attractive compared with interest-bearing assets. ST FILE PHOTO

(ST FILE PHOTO)

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.

Gold prices hit a fresh record high on Oct 13, driven by demand over reignited US-China trade tensions which drove Asia stock markets down. Silver also surged to another all-time high.

US President Donald Trump on Oct 10 imposed 100 per cent tariffs on Chinese goods to the US and announced new export controls on critical software effective from Nov 1 in response to China’s curbs on rare earth elements.

Spot gold was up 0.7 per cent at US$4,044.29 per ounce as at 10.53am, 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.

Spot silver jumped 2 per cent to a record high of US$51.52 an ounce, driven by similar factors as gold.

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’s appeal as a safe and more attractive store of value.