Gold prices surged to a record high on Tuesday as growing prospects of a series of Federal Reserve interest rate cuts this year and a second Donald Trump presidency provided a twin boost to the precious metal.
Gold gained 1.7 per cent to touch $2,465 per troy ounce, eclipsing the previous record struck in May. The latest gains come after weaker than expected US inflation data last week heightened expectations of lower Fed borrowing costs, which tend to boost non-yielding assets such as gold.
The metal climbed further following the weekend’s assassination attempt on Trump, which boosted his odds of a second presidency. The former president’s tariff plans and tax-cutting agenda is expected to increase the US budget deficit and inflame geopolitical tensions, which could fuel longer-term inflationary pressures and burnish gold’s safe-haven appeal.