Gold hits an alltime high at 2,304.09ounce
Silver hits its highest since mid2021
Markets await US nonfarm payrolls report on Friday
Gold39;s rally may have further room to run OCBC

April 4 Reuters Gold prices hit a new record high on Thursday, breaking above the 2,300 per ounce ceiling, as recent comments from Federal Reserve officials cemented market expectations around U.S. interest rate cuts.

Spot gold was down 0.3 at 2,291.65 per ounce, as of 0943 GMT, taking a breather after hitting an alltime high of 2,304.09 earlier in the session.

U.S. gold futures fell 0.2 to 2,311.20.

There is big demand coming from Asia, particularly from China and solid demand from central banks. We have geopolitical risks and expectations around central banks cutting rates. All these factors are lifting gold prices higher, Carlo Alberto De Casa, a market analyst at Kinesis Money, said.

Fed officials including Chair Jerome Powell on Wednesday continued focusing on the need for more debate and data before interest rates are cut, a move financial markets expect to occur in June.

Traders are currently pricing in about 59 chance that the Fed will cut rates in June, according to the CME FedWatch tool. Gold, which pays no interest, benefits when interest rates fall as this reduces the opportunity cost of holding bullion.

Focus now shifts to U.S. nonfarm payrolls for March due on Friday that could shed more light on the timing of first rate cut from the Fed.

Strong central bank buying…