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Gold scales an all-time peak at $2,449.89 per ounce

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Silver hits highest level since 2012

(Recasts as of 1529 GMT)

By Harshit Verma

May 20 (Reuters) - Gold prices rose to an all-time high

on Monday as a cocktail of factors from U.S. rate cut

expectations, China's stimulus measures to geopolitical tensions

lifted demand, with the momentum also carrying silver to a more

than 11-year peak.

Spot gold rose 0.4% to $2,424.30 per ounce as of

1529 GMT after hitting a record high of $2,449.89 earlier in the

session. U.S. gold futures gained 0.5% to $2,428.50.

"Inflation is sticky, we may see some whipsaws in the

inflation data, but also the burdening debt in the U.S., there

is a cause to be diversified away from that too. So it's this

perfect storm that's kept the market elevated in gold," said

Daniel Pavilonis, senior market strategist at RJO Futures.

Data last week showed that U.S. consumer prices increased

less than expected in April, suggesting that inflation resumed

its downward trend, boosting expectations for a September

interest rate cut.

Lower rates reduce the opportunity cost of holding

non-yielding bullion, which also benefits from uncertainty in

the market.

RJO's Pavilonis expects gold to propel to near $2,500 in the

short term as there's a fear of missing out from gold's rally.

"There's a lot of non-traders that are calling up

places(brokers)... to buy futures or to take physical delivery."

Adding to gold's upside was elevated risk aversion as

Iranian President Ebrahim Raisi, was killed in a helicopter

crash, analysts at Kitco Metals wrote in a note.

Meanwhile, some analysts also pointed out gold's surge to

China's announcement of "historic" steps to stabilise its

crisis-hit property sector. China is a key consumer of gold and

other industrial metals.

Spot silver rose 1.4% to $31.94 after hitting an

over 11-year high.

Platinum dipped 2.2% to $1,056.97 after hitting

its highest since May 2023. Palladium rose 0.7% to

$1,015.16.

"Platinum is trading at premium over palladium with rising

inflows of exchange traded funds," ANZ said in a note.