(Updates after prices hit the $4,100 mark)

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Gold hits record high of $4,103.58/oz, silver at $52.07/oz

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BofA lifts 2026 gold forecast to $5,000/oz, sees silver at

$65

By Sherin Elizabeth Varghese and Pablo Sinha

Oct 13 (Reuters) - Gold broke through $4,100 per ounce

for the first time on Monday, hitting another record high on

renewed U.S.-China trade tensions and expectations of U.S.

interest rate cuts, while silver also rose to an all-time high.

Spot gold was up 2.1% to $4,099.55 per ounce, as of

10:50 a.m. ET (1450 GMT), after hitting a record $4,103.58. U.S.

gold futures for December delivery rose 3% to $4,120.10.

Gold has climbed 56% this year and scaled the $4,000

milestone for the first time last week, driven by factors

including geopolitical and economic uncertainties, expectations

of U.S. interest rate cuts and robust central bank buying.

"Rises in gold and silver prices happen when investors are

concerned about the state of the world, either economically or

politically," said CPM Group managing partner Jeffrey Christian.

On the geopolitical front, U.S. President Donald Trump reignited

trade tensions with China on Friday, ending an uneasy truce

between the world's two largest economies.

Meanwhile, traders are pricing in a 97% probability of a

25-basis-point Federal Reserve rate cut in October and a 100%

chance for December. Gold, a non-yielding asset, tends to do

well in low-interest rate environments.

Analysts at Bank of America ( BAC ) and Societe Generale now expect gold

to reach $5,000 in 2026, while Standard Chartered ( SCBFF ) has raised its

forecast to an average of $4,488 next year.

"This rally has legs in our view, but a near-term correction

would be healthier for a longer-term uptrend," said Suki Cooper,

global head, commodities research at Standard Chartered Bank ( SCBFF ).

Spot silver rose 3.3% to $51.95, touching a record

high of $52.07 earlier in the session, buoyed by the same

factors supporting gold and spot market tightness.

Technical indicators show both are overbought, with the

relative strength index (RSI) at 80 for gold and 83 for silver.

Platinum rose 4.6% to $1,660.57 and palladium

gained 5.4% to $1,482.00.