Gold prices hit a record high of $2588.95 an ounce on Monday, helped by a weaker dollar and market expectations that the Federal Reserve will cut interest rates this week for the first time since 2020, possibly by 50 basis points. Tim Waterer, chief market analyst at KCM Trade, said: "The prospect that the Fed could cut rates by 50 basis points this week puts gold and the dollar in reverse. The overall picture for gold remains favourable and could rise further. If the dollar continues to fall, gold could end the year at $2,700 an ounce." All eyes will be on the Federal Reserve this week, as speculation mounts about the magnitude of the Fed's September 17-18 monetary policy meeting and the pace of future rate cuts. According to CME's Fed Watch Tool, the market now sees a 59% chance of a 50 basis point rate cut on Wednesday, up from 43% on Friday.