The United States has decided to hold off on imposing new tariffs on Chinese semiconductors for at least the next 18 months, following the conclusion of a yearlong Section 301 investigation. The Office of the US Trade Representative found China's policies in the chip sector "unreasonable" and harmful to US commerce. However, under a notice published in the Federal Register, tariffs on covered semiconductor products will remain at zero until at least June 23, 2027. Any new duties would only take effect from that date, with rates to be announced at least 30 days in advance. This move preserves Washington's ability to escalate trade measures later while avoiding immediate disruption to global supply chains.
Concurrently, precious metals are experiencing a historic rally. Gold surged above $4,500 per ounce, marking its 52nd record close of the year and putting it on track for its strongest annual performance since 1979, with gains exceeding 70%. Silver briefly traded above $70 an ounce for the first time, skyrocketing over 141% year-to-date. Platinum also reached an all-time high above $2,300. Analysts attribute the surge to a combination of geopolitical tensions—including issues surrounding Venezuela and Russian shipping blockades—heightened safe-haven demand, and expectations of US Federal Reserve interest rate cuts in 2026. Sustained central bank buying and inflows into gold-backed ETFs like the SPDR Gold Trust are also key drivers.
The US economic backdrop showed surprising strength, with third-quarter GDP growth accelerating to a 4.3% annualized pace, the fastest in roughly two years. However, the report revealed underlying cracks as business investment slumped. In currency markets, the Reserve Bank of India (RBI) conducted its most aggressive foreign exchange defense in nearly a year during October, selling $29.56 billion in the spot market to prop up the rupee, which had hit a record low.
