The foundation of the golden bull market is solid! The price of gold hits a new high, breaking through $4220! It has surged 60% so far this year.

Gold has not stopped its upward trend. As of the time of writing, spot gold rose by 0.35% to $4223.13 per ounce. The escalating trade tensions and the market's bet on the Federal Reserve's increasing monetary easing before the end of the year have supported the safe-haven demand for gold and pushed gold to continue reaching new highs. So far this week, gold has risen by nearly 5%, maintaining its strong upward momentum since mid-August, with a year-to-date increase of nearly 60%. The buying frenzy has also spread to other precious metals. Spot silver rose by 3.1% on Wednesday as the supply in the London market remains tight. Traders are betting that the Federal Reserve will implement at least one rate cut before the end of the year. Federal Reserve Chairman Powell hinted this week that the Fed plans to cut rates by another 25 basis points later this month. Lower borrowing costs are usually positive for precious metals as assets like gold do not generate interest income. President Trump stated that he believes the US is already in a trade war. This remark has raised concerns about the potential long-term damage to the global economy, further increasing the appeal of gold as a safe haven. Meanwhile, US Treasury Secretary Mnuchin proposed considering extending the "pause" in the trade war, but he also stated that recent stock market volatility caused by the trade war has not deterred federal officials from continuing with a tough negotiating stance. Furthermore, the ongoing US government shutdown has also provided support for gold. The so-called "debasement trade" is also heating up, with investors turning to physical assets like gold to hedge against the sovereign debt and currency devaluation that may result from out-of-control budget deficits. Strong gold buying demand from central banks around the world is also a key factor supporting the gold price, which has risen by approximately 60% so far this year. Saad Rahim, Chief Economist for the Trafigura Group, said, "The main driver of this round of gold price increases is physical buying. If you look at central banks around the world, they are buying a lot of gold." He added that concerns about debt sustainability and expectations of future interest rate cuts have led investors to see gold as a store of value and a hedge tool.