Spot gold extended daily gains by 1.7 per cent to a record high of $2555.16 an ounce in the US session after the latest inflation data further boosted expectations that the Federal Reserve would cut interest rates by 25 basis points next week. "The PPI data for August provided additional encouragement to the Fed, indicating that inflation is under control," said Paul Ashworth, analyst at Capital Economics, in a note. Meanwhile, the dollar weakened against a basket of major currencies after the European Central Bank cut its base rate for the second time in three months to counter falling inflation.