New Delhi, Sept. 9 -- Gold prices are trading at record high levels amid a 41% year-to-date (YTD) rally in the yellow metal. The latest bout of buying in gold, which has driven it past the Rs.1,10,000 mark per 10 grams in the domestic market and $3,650 in the international market, comes on the hopes of a rate cut by the US Federal Reserve Bank at its upcoming policy meeting next week.

Traders expect an 88% chance of a 25-basis-point Federal Reserve rate cut next week and a 12% probability of a jumbo 50-bp reduction, as per CME Group's FedWatch tool, reported Reuters. This comes after Friday's a weak labour data in the US, suggesting job growth weakened sharply in August.

Further, the US dollar's decline also supported the upward momentu...