Gold rose to a new a record high as traders geared up for an anticipated easing of the US Federal Reserve's monetary policy this week and looked for clues on further rate cuts this year.

Bullion traded above $3,682 an ounce on Monday, after gaining for four consecutive weeks. Investors see a quarter-point cut this week, following signs of labor market weakness. Swaps also price in at least another reduction before the end of the year, with a high probability of a third one. 

That expectation has driven Treasury yields to the lowest level in months and weakened the dollar, making bullion more appealing as a store of value that doesn't bear interest, while also cheaper for buyers in other currencies. Whether the Fed will challenge these bets is a key question for investors this week. 

"Macroeconomic numbers are likely to take over from tariff-related headlines," ANZ Group Holdings' Daniel Hynes and Soni Kumari said in a note. 

Gold has rallied 40% this year and recently broke out from a spell of range-bound trading to surpass an inflation-adjusted record. Persistent uncertainty over geopolitics and President Donald Trump's trade agenda, along with concerted central bank buying, have supported prices for the haven asset. 

Trump's unprecedented pressure on the Fed — including his attempt to oust Governor Lisa Cook — is the latest catalyst, which Goldman Sachs Group Inc. sees potentially driving gold to near $5,000 an ounce, just 1% of the privately-owned US Treasury market were to flow into bullion.

Gold edged higher to $3,680.48 an ounce as of 12:18 p.m. in New York. The Bloomberg Dollar Spot Index slipped 0.3%. Silver and platinum rose, while palladium fell. Copper rose 1% on the London Metal Exchange to $10,171.00 a ton.

Meanwhile, Thai authorities are discussing ways to tax gold bought and sold through various online channels and settled in baht, in a bid to stem a currency rally that's hurting exports and tourism, according to people familiar with the matter. 

With the tax, authorities aim to reduce exports of gold and make it more expensive for Thais to own the precious metal, the people said, adding that dollar inflows tied to bullion shipments were among the factors fueling the baht's rally.(alg)

Source: Bloomberg