Gold hovers around record peak of 2,164.09 per ounce
Focus on U.S. jobs data on Friday

March 7 Reuters Gold prices rallied on Thursday closer to their alltimehigh record on strengthened bets for lower U.S. interest rates this year following Federal Reserve Chair Jerome Powell39;s remarks, while geopolitical risks also worked in the bullion39;s favour.

Spot gold gained 0.3 to 2,154.79 per ounce, as of 0958 a.m. ET 1458 GMT after hitting a record high of 2,164.09 earlier in the session. U.S. gold futures rose 0.2 to 2,162.00.

Rate cut expectations are the driver for gold prices, everyone is expecting that rate cuts will come, said WGC market strategist Joseph Cavatoni, adding that central banks39; gold purchases continue to be very strong.

Zeroyield gold tends to thrive when interest rates are low.

Fed Chair Jerome Powell said on Wednesday that continued progress on inflation is not assured, though the U.S. central bank still expects to reduce its benchmark interest rate this year.

Powell39;s remarks, coupled with softer labour market conditions, pushed U.S. Treasury yields and the dollar lower, boosting demand for gold.

Geopolitical risks are fuelling gains in the bullion, said James Steel, precious metals analyst at HSBC.

We only have a narrow group of assets that investors can really call safe haven and gold is number one amongst them.

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