PRECIOUS-Gold hovers near record high on renewed trade tensions, US rate outlook

Oct 15 (Reuters) - Gold prices rose on Wednesday, hovering near record highs, as investors flocked to safe-haven bullion after renewed U.S.-China trade tensions deepened global uncertainty, with expectations of further U.S. interest rate cuts adding to the momentum.

FUNDAMENTALS

Spot gold XAU= was up 0.4% at $4,155.99 per ounce, as of 0032 GMT. U.S. gold futures GCcv1 for December delivery gained 0.3% to $4,174.30.

Bullion, which yields no interest and is considered a safe haven during broader uncertainty, has gained 55% year-to-date and touched a record high of $4,179.48 on Tuesday.

Gold's rally is driven by multiple factors, including geopolitical and economic uncertainties, expectations of U.S. interest rate cuts, strong central bank buying, de-dollarisation trend and robust ETF inflows.

Federal Reserve Chair Jerome Powell said on Tuesday that the U.S. labour market remains subdued, though the economy "may be on a somewhat firmer trajectory than expected."

Powell added that interest rate decisions would be made on a "meeting-by-meeting" basis, balancing labor market weakness with persistent inflation above target.

U.S. President Donald Trump said that Washington is considering cutting some trade ties with China, including in cooking oil, amid escalating trade tensions. Both countries began imposing tit-for-tat port fees on Tuesday.

The International Monetary Fund raised its 2025 global growth forecast, citing better-than-expected tariff and financial conditions, while cautioning that a renewed U.S.-China trade conflict could significantly curb growth.

Trump said his administration planned to produce a list on Friday of "Democrat programs" that will be closed as a result of the federal government shutdown.

Spot silver XAG= was up 0.8% at $51.83 per ounce, after having hit a record high of $53.60 on Tuesday, tracking gold's rally and tightening in the spot market.

Elsewhere, platinum XPT= edged 0.1% lower to $1,635.90 and palladium XPD= was steady at $1,526.45.

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