Gold futures are trending lower after hitting $2,150.
Gold futures fell on Monday after hitting a record high in electronic trading on Sunday night.
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It traded at $2,084.30 per ounce, reaching $2,152.30 overnight.
Expectations that the Federal Reserve will cut interest rates next year and tensions in the Middle East have helped fuel the yellow metal.
“This is largely a result of a weaker dollar, expectations of a weaker dollar and ongoing geopolitical pressures,” said David Stritch, currency analyst at Caxton. The market has a nearly 60% chance of a rate cut by March, according to the CME FedWatch tool.
UBS analysts warned against “chasing” profits.
“Given the rally over the past few weeks and expectations of aggressive rate cuts from the Federal Reserve, we are unlikely to chase prices higher in the near term. Nonetheless, this asset has once again proven its effective role in diversifying portfolio returns and hedging risk,” they said in a note to clients.
