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PRECIOUS-Gold hits all-time high, propelled by US rate-cut hopes, safe-haven appeal

BY Reuters | ECONOMIC | 08:49 PM EST

Dec 22 (Reuters) - Spot gold surged to a record high of $4,383.73 per ounce on ?Monday, lifted by expectations ?of further U.S. Federal Reserve ?rate cuts after ?last ?week's quarter-point reduction, sustained safe-haven demand, ?and a ?softer dollar.

Gold, a traditional safe-haven asset, is ?up 67% ?for ?the year, driven by geopolitical and trade tensions, robust ?central bank buying and hopes of lower interest rates next year, while a lower dollar ?index ?has also helped by making the precious ?metal less expensive for overseas buyers.

Investors are currently pricing in two U.S. rate cuts in 2026, boosting ?non-yielding gold's appeal. (Reporting by Anjana Anil and Ishaan Arora in ?Bengaluru; Editing by Mrigank Dhaniwala)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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