Gold prices hit a new record on Monday (October 13) in the global market. Investors have flocked to gold as a safe haven asset as trade tensions between the US and China escalate again and on hopes that the US central bank, the Federal Reserve (Fed), may cut interest rates. Silver prices have also reached their highest levels in history.

According to experts, spot gold rose 1.5 percent to $4,780 per ounce. Gold futures for December delivery in the US rose 2.3 percent to $4.93.

Earlier, US President Donald Trump threatened to impose 100 percent tariffs on Chinese goods on Friday and announced new export controls on key software from November 1. Chinese authorities acknowledged the issue as logical but did not impose additional tariffs on US products.

Capital.com analyst Kyle Rodda said that the US-China trade tensions are now creating new risks in the market, compared to recent events in the Middle East.

Silver prices also rose 2.7 percent to $ 51.70 per ounce. Like gold, silver prices are rising due to rising investment demand and market tightness. Goldman Sachs said that silver prices are likely to rise further in the medium term, but in the short term, price fluctuations and risks will be higher than gold.

Gold prices have increased by 53 percent since the beginning of this year. The main reasons for this are geopolitical risks, strong gold purchases by central banks, fund flows into exchange-traded funds, expectations of a Fed rate cut and economic uncertainty related to tariffs.

Market analysts say that the possibility of a 25 basis point interest rate cut in October and an equivalent reduction in December is almost certain. Fed Chair Jerome Powell will speak at the NABE-annual meeting on Tuesday (October 14), which could signal a new interest rate cut. Other Fed officials will also speak throughout the week.

Meanwhile, Trump has blamed Democrats for the ongoing government shutdown. The shutdown began on October 1 and is delaying the release of important economic data.

Platinum prices also rose 2.9 percent to $1,635.35 and palladium prices rose 3.6 percent to $1,452.50.

In this situation, investors are turning to gold, silver and other precious metals, which are affecting the price increase in international markets.