Sri Lanka, Sept. 2 -- Gold sailed past US$3,500 per ounce to a record high on Tuesday (Sep 2), as a weaker dollar and mounting expectations of a United States Federal Reserve interest rate cut in September boosted the precious metal's appeal.

Spot gold was up 0.3 per cent at US$3,487.55 per ounce as of 6.33am (2.33pm, Singapore time) after hitting a record high of US$3,508.50 earlier in the session. Bullion has gained 32 per cent so far this year.

US gold futures for December delivery gained 1.2 per cent to US$3,557.80.

"A corollary of the weaker economic backdrop and expectations of US rate cuts is boosting precious metals," Capital.com financial market analyst Kyle Rodda said.

"Another factor is the festering confidence crisis in do...