Gold holds at record high as rate cut bets fuel demand rush

Gold hit another record as traders placed stronger bets on Federal Reserve rate cuts this year and weighed an uncertain outlook for US politics.

Bullion advanced in Asia hours to touch an all-time high of $2 475.81 an ounce on Tuesday, following a 1.9% jump in the previous session. Gold has rallied this month as traders pile into bets for earlier, deeper rate cuts from the Fed amid increasing signs that inflation is cooling toward the central bank’s target. Lower borrowing costs tend to benefit the metal as it yields no interest.