The value of gold hit a new record as markets increasingly bet that interest rates will be cut early next year.
Gold rose above $2,111 an ounce for the first time in Asian trading hours, before falling back to $2,086.
There was no obvious catalyst for the move, leaving dealers suspecting that some traders were jumping onto the bandwagon after the precious metal broke $2,107 last week.
Global central banks also bought a net 800 metric tons of gold in the year to September, a record for the period, with many expecting the price to top $2,240 or $2,400.
Markets are pricing in aggressive interest rate cuts next year, which is also delivering a boost to gold, which is considered a safety net against inflation.
Traders are betting there is a 59pc chance of a US interest rate cut as early as March, up from 20pc a week ago.
Gold surged more than 3pc in early trading before paring much of those gains.
The precious metal hit new highs for a second consecutive session after breaking its record on Friday, which passed its previous all-time high it set in August 2020.
Chris Weston, head of research at Pepperstone Group, said there’s been “a big momentum shift” on gold.
Shares of gold miners were also up. Newmont rose as much as 3.6pc in Sydney, while Northern Star Resources climbed as much as 5.3pc. Zijin Mining Group jumped as much 6.4pc in Hong Kong.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
