Gold prices edged higher on Monday to trade near their record peak, helped by a weaker US dollar, while investors looked ahead to a key inflation report due later this week to gauge the Federal Reserve's interest rate trajectory.
Spot gold rose 0.4% to $2,947 an ounce as of 1211 GMT after scaling an all-time high of $2,954.69 last week.
US gold futures added 0.3% to $2,961.80.
"The dollar's move lower this month has enabled spot gold to be kept around its record highs, supported by a surge of inflows into bullion-backed exchange-traded funds," said Han Tan, Exinity Group chief market analyst, Reuters reported.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose to 904.38 tonnes on Friday, the highest since August 2023.
The US dollar index was flat, making greenback-priced bullion less expensive for buyers holding other currencies.
The threat of a trade war, induced by US President Donald Trump's tariff plans pushed gold above the historical $2,950/oz mark last week and brought the $3,000/oz level into investor focus more than ever before.
Gold is considered a safe investment during uncertainties, but higher interest rates reduce the non-yielding asset's appeal.
"Bullion bulls appear to be biding their time before claiming the $3k handle, noting the risk that the next Fed rate cut may have to be pushed back even later into the year," Tan added.
Traders forecast that the Fed's first rate easing this year will be in September.
In order to predict the central bank's policies in more depth, market participants will look at the Personal Consumption Expenditures (PCE) print, the Federal Reserve's preferred inflation measure, due on Friday.
Spot silver eased 0.3% to $32.45 an ounce and platinum shed 0.5% to $964.75. Palladium lost 1.2% to $957.54.
