Gold price hits record high on rate cut expectations

The price of gold soared Tuesday to a record peak, propelled by trader expectations of falling US interest rates in September as inflation cools. "There is no doubt that the recent surge in gold prices can be at least partially attributed to a declining dollar and falling bond yields, thanks to weaker-than-expected US data and an unexpected drop to 3 percent in US consumer inflation last week," said Fawad Razaqzada, analyst at City Index.