Beirut: Gold prices are trading lower right now, even though global risks are rising. We might expect gold to rise when uncertainty grows. But this time, the story is more complex. Demand is mixed, and some traders are taking a wait-and-see approach. Two big factors are weighing on the market: escalating tensions between the U.S. and China, and growing credit concerns across major economies. At the same time, the backdrop of a strong U.S. dollar and shifting interest-rate expectations is complicating the picture. We’ll walk through the current price trend of gold, examine what’s driving it, look at regional demand, and explore what might come next for gold.

According to National News Agency – Lebanon, as of mid-October 2025, the spot gold price reached new highs above US$4,300 per ounce, marking a gain of more than 60% for the year. For example, one report noted gold touched a record $4,378.69/oz yet pulled back slightly after. While gold remains at very elevated levels, the recent pullback means the ‘holding lower’ tone is not that gold is collapsing; rather, it is pausing after a rapid rise.

In domestic markets (for example, in India), gold has also set record highs. One report showed the price at ?127,500 per 10 grams in early October. Trading volumes remain strong, and sentiment remains ‘cautiously bullish.’ But the sharp rally earlier makes many investors cautious about entering at the top.

The relationship between the United States and China is back in focus. Trade disputes, export controls (especially on technologies and rare-earth materials), and tariffs are escalating. One piece noted that ‘gold and silver prices rallied . amid renewed trade tensions’ between the world’s top two economies. This risk is one reason gold drew so much safe-haven demand earlier.

However, the catch is this: when a risk seems to moderate (for example, by diplomatic signals), gold can give some ground. For instance, a pullback in gold followed comments that U.S. tariffs on China may not reach extreme levels. So while U.S.-China tensions are a driver, they also create swings: on a bad headline, gold jumps; on hints of easing, gold drops.

For traders and investors, this means we’re watching not just the fact of tension, but how it evolves. If relations worsen further, gold might rally again; if talks progress, we could see consolidation.