The precious metal reached US$3,501.59 an ounce during early trading in Asia, soaring past its previous record of US$3,500.10 in April.

The run in gold prices comes as investors weigh up a weakened US dollar and the prospect of rate cuts by the Federal Reserve (Fed).

Wall Street retreated from record highs Friday as a key US inflation reading accelerated, giving the Fed less room to manoeuvre at the same time concerns mount over its independence.

Wall Street was closed yesterday for Labour Day, while the dollar traded mixed against main rivals.

Trump said last month he would fire Fed governor Lisa Cook if she did not resign, after he excoriated her over claims of mortgage fraud.

The record also came after a US appeals court ruled that many of Donald Trump’s tariffs, which have upended global trade, were illegal.

However, it allowed the measures to remain in place for now, giving the US president time to take the fight to the Supreme Court.