PRECIOUS-Gold hits record high on safe-haven rush; silver follows suit

Oct 14 (Reuters) - Gold prices climbed to a record high on Tuesday as renewed U.S.-China trade tensions exacerbated broader uncertainty, bolstering safe-haven demand, while the prospects of U.S. rate cuts lent support, with silver also reaching an all-time peak.

FUNDAMENTALS

* Spot gold XAU= was up 0.4% at $4,124.79 per ounce, as of 0029 GMT, after having hit an all-time high of $4,131.52 earlier in session.

* U.S. gold futures GCcv1 for December delivery gained 0.3% to $4,143.10.

* Safe-haven gold has surged 57% year-to-date, surpassing the crucial $4,100 milestone for the first time on Monday, bolstered by geopolitical and economic uncertainties, rate-cut expectations, strong central bank buying, and strong ETF inflows.

* Spot silver XAG= was up 0.3% at $52.49 per ounce, after hitting $52.70 earlier in the day, supported by factors driving gold and tightening in the spot market.

* U.S. President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October, U.S. Treasury Secretary Scott Bessent said on Monday.

* The latest tensions followed China's announcement on Thursday to expand rare-earth export controls, prompting Trump to respond with a 100% tariff threat on Chinese imports and export controls on critical U.S.-made software starting November 1.

* The ongoing U.S. federal government shutdown, now in its 13th day, is starting to affect the nation's economy, Bessent noted.

* Bank of America and Societe Generale analysts now forecast gold to hit $5,000 by 2026, while Standard Chartered raised its 2026 average forecast to $4,488.

* Meanwhile, Philadelphia Federal Reserve chief Anna Paulson said that rising risks to the labor market bolster the case for further U.S. interest rate cuts.

* U.S. Federal Reserve Chair Jerome Powell is set to address the NABE annual meeting on Tuesday, which may provide fresh cues on rate cuts.

* Investors continue to anticipate a 25-basis-point rate cut at Fed meeting this month, followed by similar reduction in December.

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.17% to 1,018.88 tonnes on Monday from Friday.

* Elsewhere, platinum XPT= climbed 0.5% to $1,653.45 and palladium XPD= gained 1.6% to $1,498.25, hitting its highest level since May 2023.

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