Gold prices edged higher on Monday, aided by a softer dollar and expectations of a US interest rate cut, while spotlight shifted to economic data for more clues on the Federal Reserve’s monetary policy path.

Spot gold was up 0.2% at $2,405.27 per ounce, as of 0230 GMT.

Prices scaled an all-time high of $2,483.60 last week. US gold futures gained 0.3% to $2,406.10.

The dollar eased in the initial reaction to US President Joe Biden’s decision to end his reelection campaign, clearing the way for another Democrat to challenge Donald Trump.

A weaker dollar makes bullion more attractive to buyers holding other currencies.

The prospect of rate cuts and the political uncertainty in the United States are supporting gold prices, conditions are in place for gold to see another record high before end of 2024, said Kyle Rodda, a financial market analyst at Capital.com.

Markets are pricing in a 97% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Market focus will be on Friday’s US personal consumption expenditures (PCE) data.

Other releases this week include existing home sales, July S&P Global flash PMIs, advance second-quarter GDP, and weekly jobless claims.

Gold prices rise to over one-month high after US jobs report

Geopolitical rivalries, including brewing trade battles between the United States and China, now trump inflation as the biggest worry for sovereign wealth funds and central banks, an Invesco survey showed.

“I think there is an almost unstoppable process of decoupling between the US and China, it will only become more severe or accelerate if it is a Trump presidency. Gold will certainly benefit from greater geopolitical tensions,” Rodda said.

Spot silver added 0.5% to $29.12 per ounce, platinum firmed 0.1% at $963.60 and palladium rose 0.5% to $910.19.