Gold prices in spot trading rose on Tuesday to a new record level at $4130.30 per ounce, up about 0.4%, while US futures saw a similar increase, touching $4150.

This follows gold surpassing $4100 for the first time on Monday, as investors flocked to the safe haven amid renewed US President Donald Trump’s threats to impose tariffs on China and expectations of a Federal Reserve interest rate cut.

Gold in spot trading recorded $4103.58 on Monday, and US December gold futures rose 3% to $4120.10.

Gold, which yields no income, has risen 56% since the start of the year and crossed the $4000 per ounce barrier for the first time last week, driven by geopolitical and economic uncertainty, strong central bank buying, and expectations of US interest rate cuts among other factors.

Jeffrey Christian, managing partner at CPM Group, said, “Gold and silver price increases happen when investors worry about the state of the world, economically or politically,” adding that expectations of US rate cuts also support prices.

Trump reignited the US-China trade war on Friday, ending an unstable truce between the world’s two largest economies.

According to the FedWatch tool by CME Group, traders expect with 97% probability that the Federal Reserve will cut interest rates by 25 basis points in October and 100% in December.

Analysts at Bank of America and Societe Generale now expect gold to reach $5000 per ounce in 2026, while Standard Chartered Bank raised its forecast to an average of $4488 per ounce next year.

Technically, the gold relative strength index reached 80, indicating the metal is overbought.