Gold surged to a new record, driven by rising U.S.-China tensions and market expectations that the Federal Reserve will cut interest rates twice more this year.

Bullion climbed as much as 1.2% to reach $4,193.65 an ounce on Wednesday. Spot silver also rose following a volatile session on Tuesday, during which prices briefly hit an all-time high above $53.54 an ounce before sharply retreating amid indications that a historic short squeeze was easing.