Spot Gold extended gains, while recording a fresh all-time high of $2,589.71 per troy ounce on Monday, as investors largely expected a super-sized interest rate cut by the Federal Reserve this week.
The US Dollar along with US Treasury yields extended their decline.
Markets are now pricing in about a 59% chance of a 50 basis point Fed rate cut at the September 17th-18th policy meeting, compared to a 27% chance a week ago.
Futures markets continued to price in 125 basis points of Fed rate cuts by the end of this year.
Lower interest rates reduce the opportunity cost of holding Gold, which pays no interest.
ANZ has raised its short-term price forecast for Gold to $2,700 per troy ounce and its year-ending 2025 forecast to $2,900 per troy ounce.
ANZ noted the intensity of the price surge would depend on the pace at which the Fed reduces interest rates in the short term.
Meanwhile, gold purchases by central banks remains robust, commodity strategist Soni Kumari added.
As of 7:41 GMT on Monday Spot Gold was edging up 0.12% to trade at $2,581.79 per troy ounce.
Gold Futures for delivery in December were up 0.03% on the day to trade at $2,611.40 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging down 0.45% to 100.660 on Monday.
US 10-year bond yields saw a 30 basis point drop in the past two weeks.
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