Gold rises to a record high, exceeding $3709 per ounce.

Arabian Sea Newspaper - Special

Arab Sea - Follow-ups: Gold prices rose to their highest level ever on Monday as investors flocked to the yellow metal following the US interest rate cut last week and the Federal Reserve's indication of the possibility of further monetary easing. Investors are also awaiting a series of speeches by Federal Reserve officials and key US inflation data later this week. Spot gold rose 0.7 percent to $3,709.29 an ounce as of 06:37 GMT, after hitting an all-time high of $3,711.55. US gold futures for December delivery rose 1 percent to $3,743.40. Tim Waterer, chief market analyst at KCM Trade, said: "Gold is regaining its balance today, as traders focus on the potential for higher prices between now and the end of the year, supported by expectations of further interest rate cuts by the (Federal Reserve)." He added that continued purchases by the central bank continue to support gold's momentum. The US core personal consumption expenditures (PCE) price index, the central bank's preferred inflation gauge, on Friday, and words from at least a dozen Federal Reserve officials, including Fed Chairman Jerome Powell on Tuesday, may provide further insights into the bank's monetary policy outlook. Waterer said: "The precious metal may reach new highs this week if US macroeconomic data continues to support the (Federal Reserve's) cautious rhetoric." Spot silver rose 1.3 percent to $43.64 an ounce, approaching its highest level in 14 years. Platinum rose 1.2 percent to $1,420.48, and palladium rose 1.2 percent to $1,163.24.