Gold prices edged up on Monday to trade near its record peak, helped by a weaker U.S. 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 0.3% to $2,943.50 an ounce as of 0957 GMT after scaling an all-time high of $2,954.69 last week.
U.S. gold futures added 0.2% to $2,958.20.
"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.
The U.S. dollar index (.DXY), opens new tab was down, making greenback-priced bullion less expensive for buyers holding other currencies.
The threat of a trade war, induced by U.S. 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.
Last week, Trump threatened fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
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 0.1% to $32.5 an ounce and platinum shed 0.4% to $966.13. Palladium lost 1.2% to $957.32.
