Gold rose to a new all-time high with spot prices reaching intraday highs of $4,164/oz in the early trading session today, following strong inflows reported in exchange-traded funds, escalating US-China trade tensions and traders’ confidence that the Federal Reserve’s rate cuts will continue, ING's commodity experts Ewa Manthey and Warren Patterson note.

Gold and silver are two of the best-performing commodities

"Spot silver also extended the upward rally for a fifth consecutive session with prices hitting record highs above $53/oz, fuelled by a historic short squeeze in London."

"In ETF holdings, recent data shows that Gold ETFs continue to increase with total known holdings witnessing inflows of 8.5koz for a second consecutive session to 97.5moz as of yesterday. Net inflows for last week now stand at 240koz, taking the total Gold ETF holdings to the highest since 28 September 2022."

"Gold and silver are two of the best-performing commodities this year, with prices up by more than 55% and 80% YTD, respectively, supported by the Fed’s policy easing, the central bank’s purchases and geopolitical tensions, which have fuelled demand for safe-haven assets."