Gold prices hit a record high of $2,588.95 per ounce on Monday, helped by a weaker dollar and market expectations that the Federal Reserve will cut interest rates this week for the first time since 2020, potentially by as much as 50 basis points, according to Golden Finance.

"The prospect of a 50 basis point rate cut this week from the Fed has driven gold and the dollar in opposite directions," said Tim Waterer, chief market analyst at KCM Trade. "The overall outlook for gold remains favorable, and it could rise further. If the dollar continues to fall, gold prices could reach $2,700 per ounce by the end of the year."

All eyes will be on the Fed this week, with speculation growing about the size of the rate cut at the Sept. 17-18 monetary policy meeting and the pace of future cuts. According to the CME FedWatch tool, the market currently expects a 50 basis point cut on Wednesday, with a probability of 59%, up from 43% last Friday. (Jin Shi)