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Gold hits record high of $4,096.35/oz, silver at $52/oz

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

$65

(Updates for US morning hours)

By Sherin Elizabeth Varghese and Pablo Sinha

Oct 13 (Reuters) - Gold notched another record high on

Monday, as renewed U.S.-China trade tensions sent investors

flocking to safe-haven assets and expectations of U.S. interest

rate cuts added to the metal's allure.

Silver mirrored gold's ascent, also hitting an all-time

high.

Spot gold was up 1.9% to $4,093.39 per ounce, as of

10:04 a.m. ET (1404 GMT), after hitting a record $4,096.35/oz.

U.S. gold futures for December delivery surged 2.8%

to $4,113.40.

CONCERN OVER STATE OF THE WORLD DRIVING UP PRICES

"Rises in gold and silver prices happen when investors are

concerned about the state of the world, either economically or

politically," said Jeffrey Christian, managing partner of CPM

Group, adding that expectations of U.S. interest rate cuts are

also supporting prices.

On the geopolitical front, President Donald Trump reignited

trade tensions with China on Friday, ending an uneasy truce

between the world's two largest economies.

Traders are, meanwhile, now 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.

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

milestone for the first time last week, buoyed by geopolitical

and economic uncertainties, expectations of U.S. interest rate

cuts and robust central bank buying, among other factors.

Analysts at the Bank of America and Societe Generale now

expect gold to reach $5,000/oz in 2026, while Standard Chartered

has raised its forecast to an average of $4,488/oz next year.

"Given the carousel of drivers, and how short-lived dips

have been, 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.

Spot silver rose 3.3% to $51.91/oz, touching a record

high of $52/oz earlier in the session, buoyed by the same

factors supporting gold and spot market tightness.

Goldman Sachs said on Sunday it expects silver prices to

rise further in the medium term, driven by private investment

flows, but warned of heightened near-term volatility.

Technical indicators show both metals are overbought, with

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

silver.

Platinum rose 4% to $1,651.20 and palladium

gained 4.3% to $1,465.97.