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Gold notched a new high above $4,300 an ounce on Friday and was poised for its best week in five years, as signs of weakness in U.S. regional banks, global trade frictions and expectations of more rate cuts sent investors flocking to the safe-haven metal.

Spot gold was up 0.3% at $4,336.18 per ounce, as of 0233 GMT, after reaching a fresh high of $4,378.69 earlier in the session. U.S. gold futures for December delivery jumped 1% to $4,348.70.

Bullion has risen about 8% so far this week in what would be its best week since March 2020, notching a record high in each session.

Spot silver fell 0.7% to $53.86 per ounce, but stayed on track for a weekly gain. Earlier in the session, prices reached a record high of $54.35, tracking the rally in gold and a short squeeze in the spot market.

“(For gold) $4,500 could arrive as a target perhaps sooner than expected, but much may depend upon how long concerns about U.S.-China trade and the government shutdown linger over the market for,” said KCM Trade Chief Market Analyst Tim Waterer.

China levelled fresh accusations against the U.S. of causing panic over its rare earth controls, while rejecting calls to reverse export curbs.

Meanwhile, Federal Reserve Governor Christopher Waller voiced support for another rate cut due to labour market concerns.

Investors are expecting a 25-basis-point reduction at the Fed’s Oct. 29-30 meeting and another reduction in December. 

Elsewhere, Wall Street closed lower on Thursday, with signs of weakness in regional banks spooking investors already on edge over U.S.-China trade tensions. 

“The flare-up in U.S. regional bank credit concerns has given traders one more reason to buy gold,” Waterer said.

Non-yielding bullion, which tends to do well in a low interest rate environment, has gained more than 65% year-to-date, driven by geopolitical tensions, aggressive rate-cut bets, central bank buying, de-dollarisation and robust exchange-trade fund inflows,

On the geopolitical front, U.S. President Donald Trump and Russian President Vladimir Putin agreed on Thursday to another summit on the war in Ukraine.

Western nations continued to pressure Russia over its oil sales, with Britain imposing sanctions on major Russian oil firms.

Platinum fell 0.7% to $1,701.0 and palladium lost 0.4% to $1,607.93. Both metals were headed for weekly gains.