Source: Sharecast
As at 1100 BST, gold was $3,695.5 per troy ounce, another fresh high.
The precious metal, which was trading at $2,600 in early January, has now put on 43% over the year.
The safe-haven asset traditionally benefits during times of heightened geopolitical and economic risk. However, further fuelling the current rally is the weak performance of the dollar.
Donald Trump’s often-erratic trade and economic policies have weighed heavily on the greenback, as have mounting debt loads. As a result, questions are now being raised about its status as the world’s dominant currency.
The dollar was weaker against the Japanese yen, Swiss franc and euro in morning trading.
Analysts also widely expect the Fed to cut the cost of borrowing by at least 25 basis points when it meets on Wednesday.
The White House has long called for the Fed to aggressively reduce rates, despite the likely impact on inflation of Trump’s swingeing tariff regime.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Gold has reached yet another high, as a weaker dollar and growing conviction around Fed rate cuts fuel demand for real assets.
"With inflation still simmering and central banks pivoting towards easing, investors are increasingly faced with a simple choice: ride the wave of asset inflation or stick with cash and risk being left behind."
