Gold hits a record peak of 2,141.59 per ounce
Traders see a 68 chance of a June rate cut FedWatch tool

March 5 Reuters Gold struck a record high on Tuesday, moving further above 2,100 per ounce in a rally sparked by growing bets for a U.S. interest rate cut in June, with safe haven demand from war in the Middle East also tipping the scales in bullion39;s favour.

Spot gold gained 0.7 to 2,130.66 per ounce as of 1039 a.m. EDT 1539 GMT, having scaled a record 2,141.59 earlier. U.S. gold futures firmed 0.6 to 2,140.00.

Bullion last hit a historic peak in December at 2,135.40.

The big reason here is that we39;re seeing the market increasingly believing that a Fed rate cut is nearer rather than further away, said Bart Melek, head of commodity strategies at TD Securities.

Markets have to be a little bit more convinced for gold to move higher, but ultimately in the second quarter, we do think it can go to over 2,300 plus.

Gold, often used as a safe store of value during times of political and financial uncertainty, has climbed over 300 dollars since the start of IsraelHamas war.

Geopolitical risks emanating from the Red Sea and a year with a dense election calendar globally will likely see continued strength in retail demand for gold, said Nitesh Shah, commodity strategist at WisdomTree.

We wouldn39;t be surprised if gold gives back some of these gains as the Federal Reserve talks down imminent cuts, but once rate cuts look certain, we expect gold to trade…