Gold extended its record-breaking run above the $1,100 mark on Monday while crude oil rose more than $2 a barrel as markets made a strong start to the new trading week.

Gold hit a record at $1,110.85 a troy ounce, a rise of 26.5 per cent this year, before easing back to $1,107.00, up 1.1 per cent on the day as analysts digested the implications of India’s decision last week to buy half of the gold the International Monetary Fund has put up for sale.