Gold prices broke their all-time high above $2,100 an ounce (C$2,830) on Monday, with brokers betting on the Federal Reserve to cut interest rates in the new year.
The precious metal reached $2,135.39 in early Asian trading, surpassing the previous all-time high set in 2020 during the pandemic.
In recent weeks, forex traders have flocked to gold to buy safe-haven assets since the outbreak of war between Israel and Hamas.
This trend was reinforced by a series of data that suggested a slowdown in inflation in the United States in October, leading to speculation about a rate cut by the Federal Reserve (Fed).
Bets on a rate cut put additional pressure on the dollar and made gold cheaper for international buyers.
Forex traders began turning to the yellow metal after Fed Chairman Jerome Powell said on Friday that interest rates had “reached a sufficiently restrictive level,” raising hopes that the central bank would soon begin cutting its rates.