LONDON, Oct 14 — Gold prices jumped to a record high above US$4,100 (RM17,344) on Tuesday, supported by rising expectations of a US Federal Reserve rate cut this month and safe-haven demand following renewed trade tensions between the world’s two largest economies.

Spot gold rose 0.5 per cent to US$4,128.49 per ounce, as of 0805 GMT, after hitting a record high of US$4,179.48 earlier in the session.

Gold has surged 57 per cent so far this year and breached the key US$4,100 mark for the first time on Monday, driven by geopolitical and economic uncertainties, rate-cut expectations, strong central bank buying, and robust exchange-traded fund inflows.

“Renewed concerns over a global trade war have pushed gold above the psychological US$4,100 level,” said Han Tan, chief market analyst at Nemo.money.

“The next leg up towards mid-US$4k territory may require dovish surprises out of this month’s FOMC meeting.”

US President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October, US Treasury Secretary Scott Bessent said on Monday.

While trade negotiations between the US and China intensify, the two nations will start charging port fees on ocean shipping firms that move everything from holiday toys to crude oil.

Analysts at the Bank of America and Societe Generale expect gold to reach US$5,000/oz in 2026.

Spot silver fell 0.1 per cent to US$52.27, after hitting a record high of US$53.60, buoyed by the same factors supporting gold and spot market tightness.

“The short squeeze in London has been the obvious catalyst for silver’s new record high, even as bulls were already benefitting from the broader safe haven play,” Tan said.

Investors now await Fed Chair Jerome Powell’s speech at the NABE annual meeting on Tuesday for further insight into the Fed’s monetary policy path.

Philadelphia Federal Reserve chief Anna Paulson said that rising risks to the labour market have bolstered the case for further US rate cuts.

Non-yielding gold tends to do well in low-interest-rate environments.

Platinum rose 0.6 per cent to US$1,654.65, and palladium gained 0.2 per cent to US$1,477.95. — Reuters