Gold rises on Monday, reaching a new historical high over $ 3,800 per ounce, backed by the weaker dollar and increasing expectations that the US Federal Bank will further reduce interest rates this year.

Gold is negotiating at $ 3,816 with a rise of $ 1.50%.

The US Department of Commerce announced on Friday that the Price Index of Personal Consumer Expenditure (PCE) increased 0.3% in August, compared to 0.2% in July, according to estimates by Reuters.

“This mild inflationary trend in the United States has given markets to believe that further reductions will be followed by the Fed in October and December,” said Capital.com analyst Kyle Rodda.

“The climate is very optimistic and we are on the right track to try again a new record this week. The gold market is at a fairly high level right now and this can be considered as a reason to be careful about the future upward trend, “he added.

According to the CME Fedwatch Tool, investors estimate that there is a 90% chance that the Fed will reduce interest rates in October and about a 65% chance of further relaxing in December.

Gold, as a safe refuge, thrives in low interest rates and periods of geopolitical and economic uncertainty.

Investors are now awaiting US data on ISM’s PMI index for the manufacturing sector and the report on salaries outside the agricultural sector in order to receive further evidence of the health of the economy.