Spot gold was up 0.8% at $3,789.39 per ounce, after hitting a record high of $3,798.32 earlier in the session

Gold prices rose to an all-time high on Monday, supported by a weaker dollar and growing expectations that the U.S. central bank is likely to continue with interest rate cuts later this year.

Spot gold was up 0.8% at $3,789.39 per ounce as of 0251 GMT, after hitting a record high of $3,798.32 earlier in the session.

The U.S. dollar index dropped 0.2% against its rivals, making dollar-priced bullion less expensive for overseas buyers.

The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) added 0.3% in August, versus the prior 0.2% rise in July.

That benign inflation print in the United States has given the markets reason to believe further Fed cuts are coming in October and December, said Capital.com analyst Kyle Rodda.

Sentiment is very bullish and we are on track to retest another record high this week. The gold market is positioned quite long at the moment and that may be pointed to as being a reason to be cautious about future upside, Rodda added.

Traders are currently pricing in a 90% chance of a central bank cut in October, with almost a 65% probability of another in December, per CME FedWatch Tool.

Share markets got off to a cautious start in Asia on Monday as investors braced for a possible shutdown of the U.S. government.

Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI and Friday’s non-farm payrolls report for further clues on the economy’s health.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.89% to 1,005.72 tonnes on Friday from 996.85 tonnes on Thursday.