BENGALURU- Gold prices hit an all-time high on Monday as a slowing US inflation trend boosted expectations that the Federal Reserve could deliver its first interest rate cut soon, while silver scaled a more than 11-year peak.
Spot gold was up 0.9 percent at $2,436.76 per ounce, after hitting a record high of $2440.49 earlier in the session.
US gold futures rose 1 percent at $2,440.60.
The main driver for gold is that there is a soft US dollar and sentiment is being boosted on the basis that the Federal Reserve is expected to cut rates soon, said Kyle Rodda, a financial market analyst at Capital.com.
The dollar index remained subdued, making greenback-priced bullion more attractive to buyers holding other currencies.
Data last week showed signs of cooling inflation and traders now expect a 65 percent chance of a US rate cut by September.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
Minutes of the Fed’s last policy meeting due on Wednesday along with comments from a slew of Fed speakers will be on investors’ radar for this week.
