Gold breaks $4,400 to hit record high

Gold broke through $4,400 per ounce for the first time on Monday, hitting an all-time high as expectations of US interest rate cuts combined with escalating geopolitical tensions to boost safe-haven demand.

Markets are currently pricing in two rate cuts by the Federal Reserve next year, amid signs of easing inflation and a weakening labor market, which have weighed on real yields and supported non-yielding assets such as gold.

Investors will closely watch this week’s release of the second estimate for Q3 GDP, which could provide fresh clues on the Fed's policy outlook and reinforce expectations for a more accommodative stance.

On the geopolitical front, risk sentiment remains fragile after reports that the US is monitoring another vessel near Venezuela following the seizure of two tankers earlier this month, while Ukraine struck a Russian tanker in the Mediterranean Sea for the first time, underscoring the potential for broader supply and security disruptions.

Bullion has surged more than 60% so far this year, putting it on track for its strongest annual performance since 1979.

The rally continues to be underpinned by robust central bank purchases, sustained ETF inflows, and persistent investor demand for portfolio hedges amid heightened macroeconomic and geopolitical uncertainty.