Gold prices hit a record high at above $4,380 per ounce on Monday, driven by expectations of further US interest rate cuts and escalating geopolitical tensions. Markets are currently pricing in two additional rate cuts by the Federal Reserve next year, following softer-than-expected US inflation data last week. On the geopolitical front, the US is reportedly monitoring another vessel near Venezuela after having seized two tankers this month, while Ukraine struck a Russian tanker in the Mediterranean Sea for the first time. Bullion has surged more than 60% so far this year, on track for its best year since 1979. The rally is also supported by strong central bank buying and sustained ETF inflows.
