Gold prices hit a record high on Thursday, climbing for a fifth consecutive session, as investors increased safe-haven bets amid trade tensions between the world’s two largest economies, a US federal government shutdown and the prospect of US rate cuts.

Spot gold was up 0.2% at $4,217.39 per ounce. Earlier in the session, bullion touched a record high of $4,241.77.

US gold futures for December delivery were up 0.7% at $4,232.0.

US officials on Wednesday criticised China’s expanded rare-earths export controls, describing them as a threat to global supply chains, while signalling potential retaliatory measures, after the two countries introduced reciprocal port fees on each other’s ships on Tuesday.

“The commentary from the Fed that emphasised higher prospects of rate cuts going forward is supportive, while US President Donald Trump turning around and labelling this a trade war is clearly providing a pretty strong impetus for gold,” said OANDA senior analyst Kyle Rodda.

US Treasury Secretary Bessent added that Washington had further measures it could deploy, including export controls, if Beijing proceeded, and was also ready to impose tariffs on China over its purchases of Russian oil, as long as European partners joined in.

The two-week-old federal government shutdown may cost the US economy as much as $15 billion a week in lost production, a Treasury official said on Wednesday.

Investors anticipate a near-certain 25-basis-point rate cut at this month’s US Federal Reserve meeting, followed by another in December.

Non-yielding gold, which has gained 61% so far this year, on a combination of factors, including geopolitical risks, interest rate cut bets, central bank buying, de-dollarisation, and robust inflows into gold-backed exchange-traded funds, tends to do well in a low-interest-rate environment.

ANZ said that it expects gold prices to reach $4,400 per ounce by year-end.

Holdings of the SPDR Gold Trust, the largest gold-backed ETF, increased to 1,022.60 tons on Wednesday, their highest since July 2022.

Spot silver fell 0.5% to $52.78 per ounce, after having hit a record high of $53.60 on Tuesday, tracking gold’s rally and a short squeeze in the spot market.

Platinum gained 0.3% to $1,658.10 and palladium fell 0.3% to $1,531.82.