The value of gold hit a new record as markets increasingly bet that interest rates will be cut early next year.

Gold rose above $2,111 an ounce for the first time in Asian trading hours, before falling back to $2,086.

There was no obvious catalyst for the move, leaving dealers suspecting that some traders were jumping onto the bandwagon after the precious metal broke $2,107 last week.

Global central banks also bought a net 800 metric tons of gold in the year to September, a record for the period, with many expecting the price to top $2,240 or $2,400.

Markets are pricing in aggressive interest rate cuts next year, which is also delivering a boost to gold, which is considered a safety net against inflation.

Traders are betting there is a 59pc chance of a US interest rate cut as early as March, up from 20pc a week ago.

Read the latest updates below.