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Gold extended gains, rising about 1 percent to a new record high of $3,718.56 an ounce, after hitting a record high of $3,707.40 last Wednesday. US gold futures for December delivery rose 0.5 percent to $3,723.70.
Tim Waterer, senior market analyst at KCM Trade, said: "Gold is back nearing $3,700, and we could see new highs this week if US macroeconomic data continues to provide signals that the Federal Reserve will continue to cut rates further."
Markets are currently focused on the release of the core personal consumption expenditures (PCE) index next Friday, the Fed's preferred measure of inflation.
Waterer added, "The combination of the Fed's dovish stance (lower interest rates) and continued demand from central banks is providing momentum in gold's favor."
At least 12 Federal Reserve officials are scheduled to speak this week, including Chairman Jerome Powell on Tuesday, as investors await further signals on monetary policy direction.
The Fed cut interest rates by 25 basis points last Wednesday, warning of persistent inflation pressures, raising doubts about the pace of future easing.
Fed member Stephen Miller defended his independence as a policymaker last Friday after dissenting in favor of a deeper rate cut at Wednesday's meeting.
Investors widely expect two additional 25-basis-point rate cuts this year, in October and December, with odds of 93% and 81%, respectively, according to the FedWatch tool.
Gold, which often benefits from lower interest rates, has risen more than 40% since the beginning of the year, driven by geopolitical and economic uncertainty, central bank buying, and monetary easing.
Silver nears 14-year high
Spot silver rose 0.3 percent to $43.20 an ounce, approaching a 14-year high, while platinum fell 0.4 percent to $1,398.40, and palladium rose 0.1 percent to $1,150.75.
In parallel, the dollar stabilized today as traders awaited a series of speeches by Federal Reserve officials throughout the week, which could provide additional clues regarding the path of US interest rates after the central bank resumed its monetary easing cycle last week.
Currency movements at the start of the Asian session were relatively calm after last week's fluctuations following a series of interest rate decisions by the Federal Reserve, the Bank of England, and the Bank of Japan.
The Japanese yen fell 0.16 percent to 148.22 against the dollar, paring Friday's gains after the Bank of Japan's more hawkish tone raised expectations of an imminent interest rate hike.
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Meanwhile, the pound fell to a two-week low of $1.3458, pressured by domestic factors, most notably rising government borrowing in Britain and the Bank of England's interest rate decision, which revealed the difficulty of balancing growth and curbing inflation.
Dollar, Euro, and Sterling
"We've pushed back our forecast for the next move to 2026," said Jane Foley, head of foreign exchange strategy at Rabobank, referring to the expected Bank of England cut. "While this has already largely been reflected in prices and with investors focused on the UK's fiscal position, we believe the pound will remain under pressure through the autumn and possibly beyond."
On a broader scale, the dollar continued to recover its losses from last week's Federal Reserve interest rate cut, with the dollar index rising slightly against a basket of currencies to 97.75.
The euro fell 0.07 percent to $1.1738, while the Australian dollar fell 0.02 percent to $0.6589.
About 10 Federal Reserve officials, including Chairman Jerome Powell, are scheduled to speak this week, with investors closely awaiting their views on the economy and the issue of central bank independence.
"There are chances that these speeches will impact the currency markets, and I think the most important speech will be from Stephen Merrin, because the market will want to know his view on the independence of the Federal Reserve and the extent of the president's influence and so on," said Joseph Capurso, head of foreign exchange and international economics at the Commonwealth Bank of Australia.
In Asia, China kept its benchmark lending rate unchanged for the fourth consecutive month in September, in line with expectations.
The Chinese yuan remained largely unchanged in offshore transactions following the decision, rising 0.06 percent in its latest trading session to 7.1151 against the dollar.
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