Gold near record peak on weak US dollar

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, reports Reuters.

Spot gold rose 0.4 per cent 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 per cent 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.

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.

Spot silver eased 0.3 per cent to $32.45 an ounce and platinum shed 0.5 per cent to $964.75. Palladium lost 1.2 per cent to $957.54.