Gold was up on Tuesday morning in Asia, reaching a record high for a second consecutive day as investors weigh a weak dollar and slow progress towards a U.S. COVID-19 stimulus package.

Gold futures climbed by 0.35% to $1,981.60 by 10:23 PM ET (3:23 AM GMT).

Supporting gold, the U.S. dollar gave up gains from Monday, maintaining a weak outlook and moving in a range close to two-year-lows. The weak dollar combined with the U.S. Federal Reserve keeping interest rates at near zero are giving gold a boost and pushing it towards the $2,000 range.

Low or negative interest rates are typically positive for gold prices as they make holding interest-bearing investments like bonds less attractive and reduce the opportunity cost of holding gold. 

However, some experts worry that interest rates may not stay low for long.

“While interest rates should still be very low around year-end, the narrative that they will remain low for the foreseeable future could begin to shift and dull some of the metal's shine," Yung Yu-Ma, chief investment strategist at BMO Wealth Management, told Markets Insider.

The U.S. Congress has not yet been able to pass a COVID-19 package. Unemployment benefits from a previous package ended last Friday. A senior administration official told Fox News that as the negotiations continue to progress slowly, the administration is considering a number of options that might be available without congressional legislative action.