Bullion rose to record high of 2,599.92 on Wednesday
U.S. jobless claims data due at 1230 GMT

Sept 19 Reuters Gold prices climbed on Thursday after hitting a record high in the previous session, as the U.S. Federal Reserve delivered a supersized interest rate cut.

Spot gold rose 0.8 to 2,578.40 per ounce, as of 0734 GMT, after scaling a record high of 2,599.92 on Wednesday.

U.S. gold futures edged 0.2 higher to 2,604.20.

The Fed kicked off with a largerthanusual 50basispoint reduction on Wednesday that Chair Jerome Powell said was meant to show policymakers39; commitment to sustaining a low unemployment rate now that inflation has eased.

Powell, however, said the economy remained strong, with many job market indicators including unemployment claims and even the current 4.2 unemployment rate not being at worrying levels.

Gold prices are idling near yesterday39;s closing price as markets digest the seesaw volatility in the wake of the Fed rate decision, said Ilya Spivak, head of global macro, Tastylive.

Zeroyield bullion tends to be a preferred investment in a lower interest rate environment and during geopolitical turmoil.

Traders are currently anticipating a 65 chance of a 25 bp reduction at Fed39;s November meet and a 35 chance of a 50bp cut, according to the CME FedWatch tool.

Gold is likely to reach new highs between 2,640 and 2,700 this year. Softening economic data could be catalysts for higher gold prices, said Kelvin Wong, OANDA39;s senior market…