Spot gold gained 0.1% to $3,681.18 per ounce, after reaching a record high of $3,689.27 earlier in the session

Gold prices hit a record peak on Tuesday, supported by a weaker dollar ahead of the U.S. central bank’s policy meeting this week, where the bank is widely expected to cut borrowing rates.

Spot gold gained 0.1% to $3,681.18 per ounce as of 0326 GMT, after reaching a record high of $3,689.27 earlier in the session.

The sentiment is very bullish. Markets are buying into rate cuts, going into this FOMC decision. The outlook remains strong for gold in the short to medium term, said Kyle Rodda, an analyst at Capital.com.

There’s a lot of dovishness baked into the rates curve, and if the central bank doesn’t support that in their guidance and forecasts, it could result in gold prices hitting an air pocket. If the bank backs market pricing though, that could be the catalyst to send it through $3,700.

U.S. President Donald Trump in a social media post on Monday called for bank Chair Jerome Powell to enact a “bigger” cut to benchmark interest rates.

Traders are pricing in a near-certain 25 bps rate cut at the end of the two-day meeting on September 17, with a small chance of a 50 bps cut, according to the CME FedWatch tool.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

The dollar traded close to a 2-1/2-month low against the euro and near a 10-month low versus the risk-sensitive Aussie.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund (ETF), said its holdings rose 0.21% to 976.80 tonnes on Monday from 974.80 tonnes on Friday.