Gold rose to another record high with spot prices reaching intraday highs of $4,242/oz this morning, driven by rising US-China tensions and expectations of two more Fed rate cuts this year, ING's commodity experts Ewa Manthey and Warren Patterson note.

Gold and Silver are two of the best-performing commodities

"Silver prices also rose by more than 3% to close above $53/oz yesterday, amid tight supply in London. US Treasury yields fell to a multi-month low after Fed Chair Powell signalled a likely quarter-point rate cut this month."

"As for China, President Trump issued a fresh trade threat against the country, obviously heightening trade tensions, with Beijing vowing retaliation over Washington’s proposed 100% tariff hike. Additionally, traders remain cautious ahead of the Section 232 probe outcome on critical minerals – including Silver, platinum and palladium – amid renewed fears of potential tariffs, despite their earlier exemption in April."

"Gold and Silver are two of the best-performing commodities this year, with prices up by more than 55% and 80% YTD, respectively, supported by central bank purchases and inflows into ETF holdings. Safe-haven demand has been fuelled by persistent US-China trade tensions, threats to Fed independence, and the ongoing US government shutdown."