PRECIOUS-Gold hits record high on Fed rate-cut bets; silver scales fresh peak

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Gold hits all-time high of $4,391.92

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Silver hits record high of $69.23/oz

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Platinum hits over 17-year high

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Palladium hits near three-year high

(Updates for Asia open)

By Sherin Elizabeth Varghese

Dec 22 (Reuters) - Gold prices surged to a record high on Monday, riding on growing expectations of further ?U.S. interest rate cuts and strong safe-haven demand, with silver also joining the rally to hit ?an all-time peak.

Spot gold rose 1.2% to a record $4,391.92 an ounce, while ?spot silver climbed 2.7% by 0344 GMT to ?hit a historic high ?of $69.23.

Bullion has gained 67% so far this year, shattering multiple records and breaching the $3,000 and $4,000 per-ounce ?milestones for the first time. It is ?poised for its biggest annual gain since 1979.

Silver has surged 138% year-to-date, vastly outperforming gold, underpinned by robust investment inflows ?and persistent supply constraints.

"With December usually producing ?positive ?returns for gold and silver, seasonality is on their side," said StoneX senior analyst Matt Simpson.

"Given that gold has already risen 4% this ?month and we're nearing the end of the year, bulls may want to tread with caution as volumes are to deplete and odds of profit-taking are also likely on the rise."

Traditionally viewed as a safe-haven asset, gold has been supported by heightened geopolitical and trade tensions, steady central bank ?buying ?and expectations of lower interest rates next year.

A softer dollar has provided an additional tailwind by making the metal cheaper for overseas ?buyers.

Markets are currently pricing in two U.S. rate cuts for next year despite the Federal Reserve signalling caution. Non-yielding assets such as gold tend to benefit in lower interest rate environments.

Simpson said two Fed rate cuts were pencilled in for 2026, with a faster U.S. jobs slowdown and a shift to a more ?dovish Fed likely to add further upside to gold.

Elsewhere, platinum jumped 4.1% to $2,054.25, hitting its highest in more than 17 years, while palladium climbed 4% to $1,781.32, hitting a near three-year high.

(Reporting ?by Sherin Elizabeth Varghese in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)