Gold surges to record high in early Thursday trade

Gold surged to a record high on Thursday trade as the Federal Reserve kept its projection of three rate cuts for the year, causing the US dollar and bond yields to fall, according to Reuters.

Lower rates make gold more attractive, driving spot gold up 0.8 per cent to $2,203.09 per ounce, hitting an all-time high of $2,222.39 earlier.

Fed Chair Jerome Powell’s dovish tone and the likelihood of rate cuts boosted gold sentiment. With a 75 per cent probability of rate cuts beginning in June, according to FedWatch Tool.

“With Powell keeping three potential rate cuts in play this year, bond yields and the USD dipped, which opened a pathway higher for the gold price,” Tim Waterer, chief market analyst told Reuters.

Technical analysis suggests spot gold may challenge resistance at $2,222 per ounce.

In the broader market, spot silver remained steady at $25.63 per ounce, while platinum rose 1.2 per cent to $917.60 and palladium climbed 1.2 per cent to $1,033.56.