On Monday, spot gold stayed near all-time highs while the dollar index fell to a 13-month low. This move comes on the heels of Fed Chairman Jerome Powell's speech at the Jackson Hole Symposium, and the market now widely expects the Fed to cut interest rates in September.

In his speech last week, Powell hinted that the Fed was prepared to adjust monetary policy and that the timing and magnitude of the rate cut would depend on future economic data. He noted that labor market risks have risen, while inflation risks have diminished. Fed policymakers have increased confidence that inflation is moving toward the 2% target, which provides support for monetary policy easing.

The market expects a rate cut between 25 basis points and 50 basis points next month. At the same time, the market also expects the Fed to cut rates by a cumulative 100 basis points by the end of the year.

In addition, news from China's increased gold import quota and increased gold ETF positions further supported gold prices, indicating strong demand.

As of 7:05 GMT on Monday, spot gold was up 0.14% at $2,516.24 per ounce. Last week, gold set a new all-time high at $2,531.76 an ounce.

In gold futures, gold futures for December delivery were up 0.30% at $2,554.00 an ounce.

The U.S. dollar index (DXY), which measures the relative strength of the greenback against six other major currencies, was essentially flat Monday at 100.707. in the previous session, the DXY had dipped as low as 100.534, which was its lowest level since July 20, 2023.