Gold touched record peaks on Monday, as cooler US inflation figures reinforced projections that the cycle of cutting interest rate by Fed will likely start by June.

Spot gold added 1.2% at $2,258.12 per ounce, post touching a record peak previously of $2,265.49 during the session while US gold futures advanced by 1.8% to $2,279.10 per ounce.

According to Jun Rong, the core reading, which is currently at its lowest point in over two years, may provide some support for the Fed's decision to begin trimming interest rates as early as possible.

Data released on Friday indicated that U.S. prices softened in February, with the PCE price index advancing by 0.3%.

Fed Chair Jerome Powell stated that the most recent U.S. inflation data is "along the lines of what we would like to see," hinting that a June interest rate drop was possible.

Gold recorded the best monthly tick up not seen in over three years in March following a strong surge driven by projections of rate cut, robust demand on safe haven and central bank buying.