Gold surged to a record above $4,100 on Tuesday, supported by expectations of US Federal Reserve rate cuts and renewed US-China trade tensions with silver also hitting an all-time high. Spot gold rose 1.7 per cent to $4,179.48 per ounce, while December US gold futures gained 1.3 per cent to $4,187.50. Gold has climbed 57 per cent year-to-date, crossing the $4,100 mark for the first time on Monday. Bullion was boosted by geopolitical and economic uncertainty, strong central bank buying, and robust exchange-traded fund inflows. Analysts at Bank of America and Societe Generale expect gold to reach $5,000 by 2026, while Standard Chartered raised its 2026 forecast to $4,488. Spot silver rose 2.2 per cent to $53.60, supported by similar factors. Platinum increased 1.9 per cent to $1,677.0, and palladium gained 2.1 per cent to $1,505.75. Philadelphia Fed chief Anna Paulson cited rising labour market risks as support for further rate cuts, while traders see a 99 per cent and 94 per cent probability of a 25 basis point reduction in October and December. Investors await Fed Chair Jerome Powell's speech at the NABE annual meeting for more clarity. Meanwhile, US-China tensions persist ahead of a planned late-October meeting between President Donald Trump and Chinese leader Xi Jinping, following China's rare-earth export controls and Trump's proposed tariffs. The ongoing US government shutdown, now in its 13th day, is also starting to affect the economy. Attribution: Reuters Subediting: Y.Yasser
