New record under

Gold hit a new record high on Tuesday as investors predicted the Fed would cut interest rates this year and the uncertain outlook for U.S. politics. Bullion rose in Asia on Tuesday to hit an all-time high of $2,475.81 an ounce after gaining 1.9 percent in the previous session. Gold has rallied this month as investors look to the Fed for earlier rate cuts amid growing signs that inflation is moving toward the U.S. central bank’s target. Lower borrowing costs tend to benefit the metal because it doesn’t pay interest. Gold has gained about 20 percent this year, supported by big purchases by central banks, strong consumer appetite in China and demand for safe-haven assets amid geopolitical tensions. Investors opened long positions in the precious metal after stronger-than-expected U.S. retail sales triggered a brief sell-off on Tuesday, helping to fuel the recovery and attract more flows, according to Chris Weston, head of research at Pepperstone Group. “The fundamentals have clearly shifted to give investors more reasons to reweight their portfolio gold holdings, which has led to price-sensitive funds moving higher. With broad-based positioning and sentiment not close to the extremes, $2,500 could be tested very soon,” Weston said in a note on Wednesday. Elsewhere, markets continued to assess the financial and political fallout from the attempted assassination of Donald Trump over the weekend as his presidential bid gains momentum. If global trade tensions escalate in response to proposed higher tariffs, Trump’s return to the White House could strengthen gold’s safe-haven status. Spot gold rose 0.1% to $2,472.29 as of 9:11 a.m. Singapore time. Silver gained, while platinum and palladium were flat.