Gold prices rose to a record level on Tuesday amid renewed trade tensions between the United States and China, increasing uncertainty and boosting demand for the safe haven, while expectations of U.S. interest rate cuts also supported prices.

Spot gold increased 0.4 percent to $4124.79 an ounce by 00:29 GMT, after hitting a record high of $4131.52 earlier in the session.

U.S. December gold futures rose 0.3 percent to $4143.10.

Gold, considered a safe haven, has jumped 57 percent since the beginning of the year and surpassed the $4100 level for the first time on Monday, supported by geopolitical and economic concerns, expectations of interest rate cuts, large purchases by central banks, and inflows into exchange-traded funds.

Spot silver rose 0.3 percent to $52.49 an ounce, after reaching $52.70 earlier in the day.

U.S. Treasury Secretary Scott Peasent said on Monday that President Donald Trump still intends to meet his Chinese counterpart Xi Jinping in South Korea in late October.

The tensions followed China’s announcement last Thursday to expand restrictions on rare earth exports, prompting Trump to threaten 100 percent tariffs on Chinese imports and impose controls on the export of critical U.S. software starting November 1.

Peasent noted that the ongoing federal government shutdown, now in its 13th day, is beginning to affect the U.S. economy.

Analysts at Bank of America and Societe Generale expect gold to reach $5,000 by 2026, while Standard Chartered Bank raised its 2026 average forecast to $4,488.