Gold hit a new record above $4,150 per ounce as traders priced in upcoming Federal Reserve rate cuts

After a very awkward trading session on Wall Street, the S&P 500 managed to surge by 1.6% at Monday’s market close, while the Nasdaq rallied by 2.3% and gold broke yet another record, breaking past $4,150 per ounce for the first time ever, according to data from CNBC.

The market rebound followed a chaotic Friday session that erased $2 trillion in value after U.S. President Donald Trump reignited trade tensions with China. This time, stocks, metals, and crypto-adjacent sectors all responded sharply as Wall Street digested Trump’s follow-up statement posted on Truth Social.

In the post, he hinted that the “massive increase of tariffs” he’d threatened might not happen after all. Gold didn’t wait around. It surged 2.14% to $4,103.47, after hitting an all-time high of $4,151 during intraday trading. Futures for December delivery wrapped up 3.3% higher at $4,150.

Phillip Streible, chief market strategist at Blue Line Futures, said, “Gold could easily continue its upward momentum. We could see prices north of $5,000 by the end of 2026.” Phillip pointed to steady central bank buying, firm ETF inflows, escalating trade pressure, and growing bets on lower interest rates as core drivers of the rally.

Tech stocks lift Wall Street as Trump softens tariff tone

The tech sector was the first to roar back. Broadcom skyrocketed 10% after announcing its OpenAI partnership. Oracle rallied over 5%, while Nvidia jumped 3% and AMD added 1%. Those gains helped push the Nasdaq up more than 2%, making it the day’s top performer.

Nearly 80% of S&P 500 components traded green. Small-caps weren’t left out either, as the Russell 2000 popped 2.5% after closing Friday down 3%.

Trump’s Friday comments triggered the worst one-day drop in months, but his toned-down remarks over the weekend eased some of the panic. Still, the trade war clouds remain. Many U.S. tech firms depend on rare earths from China to build chips, EV parts, and consumer electronics, so this tug-of-war rattles investors quickly.

The Dow Jones Industrial Average rebounded 621 points, or 1.4%, clawing back about 70% of its Friday losses. The S&P 500 retraced nearly 60% of its prior dip, with optimism building ahead of earnings season.

Gold and silver rally as Bitcoin holds steady after traders lock in rate-cut bets

Markets also reacted to growing certainty that the Federal Reserve will cut rates. Traders are now betting with 97% confidence on a 25-basis-point cut in October, and they see a 100% chance of another one in December. That’s music to the ears of gold bulls. The metal, which doesn’t pay interest, usually thrives when rates drop.

Analysts at Bank of America and Société Générale both predict gold to hit $5,000 by 2026. Standard Chartered raised its forecast, expecting an average price of $4,488 next year.

Silver didn’t miss out. It spiked 3.44% to $52, after peaking at $52.12, also a record. Both gold and silver flashed overbought signals, with RSI levels at 80 and 83, respectively. Elsewhere, platinum jumped 4% to $1,650.65, while palladium added 5.23%, closing at $1,479.04.

Wall Street’s momentum is to be tested this week. The government shutdown is dragging on, and a critical payroll deadline is approaching on October 15. Also, major banks are set to report earnings starting Tuesday, with Citigroup, Goldman Sachs, Wells Fargo, JPMorgan, Bank of America, and Morgan Stanley all in focus. A wave of regional banks will follow.

Meanwhile, after getting caught in the crossfire that saw it plunge all the way to $102,000, Bitcoin has now steadied above $115,000. Galaxy Digital weighed in on what happened, calling the event “one of the largest liquidation events in digital asset history.”

Galaxy pointed to two triggers: a major pricing flaw on an offshore exchange, and a sudden global macro shock linked to the new tariff headlines that had already rattled markets. According to Galaxy, around $60 to $90 million worth of USDe was dumped on a large offshore platform.

That platform didn’t use an independent price feed; it valued collateral based on its own order-book data, and when that data tanked, it triggered an isolated depeg that dragged USDe down to 65 cents on that one exchange. Everywhere else, it stayed near $1.

The chaos spread like wildfire as leverage across crypto got torched. The total damage? Over $19 billion in liquidations across the broader market.

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