A renewed surge in haven demand pushed gold prices toward record highs on Wednesday, as mounting trade frictions between the United States and China coincided with market bets on further interest rate cuts by the Federal Reserve, according to Bloomberg.

The metal traded at $4,162.98 an ounce at 7:32 am in Singapore, just shy of Tuesday’s record of $4,179.70. Silver also gained after wild price swings a day earlier, when the metal briefly touched an all-time high above $53.54 before dropping sharply.

Investor appetite for precious metals has been strengthened by the combination of falling bond yields and geopolitical uncertainty. US Treasury yields dropped to their lowest in weeks on Tuesday after Fed Chair Jerome Powell hinted the central bank is preparing another quarter-point rate cut later this month. With borrowing costs easing, non-yielding assets such as gold and silver have become more attractive.

Market sentiment was further unsettled after former President Donald Trump suggested halting the cooking oil trade with China, reviving tensions between the two largest economies. Beijing responded by warning of retaliatory action following Washington’s latest threat of a 100 percent tariff increase.

In silver, liquidity shortages in London triggered a scramble for physical supply this week, driving local prices above New York futures. Although the price gap narrowed on Tuesday as borrowing costs declined, traders say the market remains exceptionally tight.

Meanwhile, attention has turned to Washington’s Section 232 probe into critical minerals, which includes silver, platinum, and palladium. The investigation has reignited fears of renewed tariffs on the metals, despite their exemption from duties earlier this year.

Gold’s advance forms part of a broader rally across the precious metals complex, with gains of between 58 and 80% so far this year. Analysts attribute the surge to central-bank purchases, strong inflows into exchange-traded funds, and rising concern over the “debasement trade” — investors seeking refuge from ballooning US budget deficits and political gridlock.