Gold notched another record high 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.

Gold surged past $4,100 an ounce for the first time on Monday, buoyed by safe-haven buying as U.S.-China trade tensions resurfaced and expectations of a Federal Reserve rate cut later this month further lifted demand.

Spot gold was up 2.1% at $4,099.59 per ounce by 1447 GMT. U.S. gold futures for December delivery gained 3% to $4,119.90 per ounce.

"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.