Safe-haven gold hits record high

Gold notched a fresh record high above the $4,100 level on Tuesday, lifted by expectations of a rate cut this month by the US Federal Reserve and a flight to safety after a flare-up in trade tensions between Washington and Beijing, reports Reuters.

Spot gold rose 0.7 per cent to $4,137.76 per ounce as of 11:22 a.m. ET (1522 GMT), after hitting a record high of $4,179.48 earlier in the session. US gold futures for December delivery gained 0.5 per cent to $4,153.80.

The metal has surged 57 per cent this year, breaking the $4,100 barrier for the first time on Monday.

Its rally has been driven by multiple factors, including geopolitical uncertainties, expectations of US interest rate cuts, strong central bank buying and robust ETF inflows. Analysts at Bank of America and Societe Generale now see gold reaching $5,000/oz in 2026.

"The uptick in US-China trade tensions, the ongoing government shutdown, and expectations of further Fed easing are all supporting gold," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

US President Donald Trump's threats to impose 100 per cent tariffs on Chinese goods, a rollout of tit-for-tat port fees by the two biggest economies and a broader macro trend of de-dollarization could push gold to $5,000/oz by mid-next year, Grant added.