Gold prices rose on Monday, nearing an all-time high, supported by a weakening dollar and growing expectations that the Federal Reserve might continue to lower interest rates later this year. Spot gold rose by 0.5% to $3,776.72 per ounce as of 0150. Bullion hit a record high of $3,790.82 last week. Gold futures in the U.S. for December delivery held steady at $3,806.20.

The U.S. dollar index fell by 0.2% against its counterparts, leading to lower costs for foreign buyers of dollar-denominated bullion. The Personal Consumption Expenditures Price Index rose by 0.3% in August, up from a previous increase of 0.2% in July. Market participants are currently estimating a 90% chance of a Federal Reserve rate cut in October, with around a 65% likelihood of another cut in December. Share markets began the week cautiously in Asia on Monday, as investors braced for the possible effects of a U.S. government shutdown.

Investors are currently awaiting U.S. data on job openings, private payrolls, the ISM manufacturing PMI, and the upcoming non-farm payrolls report to gain further insights into the economy’s health. SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, announced a rise in its holdings by 0.89%, reaching 1,005.72 tonnes on Friday, up from 996.85 tonnes on Thursday.

Physical gold demand in China saw a continued decrease last week, with discounts hitting multi-year lows. Conversely, steady buying persisted in other major Asian markets, even with high prices, in anticipation of further rises. Elsewhere, spot silver increased by 0.6% to $46.26 per ounce, platinum advanced by 2.2% to $1,602.45, and palladium rose by 0.8% to $1,279.68.