Gold set another record high, rising above US$2,300 an ounce on the likelihood the US Federal Reserve will cut interest rates in 2024 and sustained demand from central banks.

Bullion touched a peak of US$2,304.96 an ounce before trading little changed as investors took comfort in Fed chair Jerome Powell’s assurance on April 3 that it will likely be appropriate to begin lowering borrowing costs “at some point this year”.

Silver held near the highest level in almost three years. Lower rates are generally positive for non-yielding precious metals.

Gold has been on a tear since mid-February – setting a record each day so far this week – as investors wager that it stands to benefit from the impending pivot by the Fed.

Bullion has found additional support from heightened geopolitical risks, including in the Middle East and Ukraine, as well as central bank purchases.

The latest data compiled by the World Gold Council showed that central banks continued adding to their gold holdings in February, marking the ninth straight month of accumulation.

China dominated purchases, with India and Kazakhstan also eager buyers.

Spot gold was steady at US$2,296 an ounce at 2.47pm in Singapore on April 4, following a seven-day rally.

That sustained advance has lifted the metal’s 14-day relative-strength index close to 83, well above the level of 70 that some investors see as an indication that prices have risen too far, too fast.

Silver for immediate delivery was flat after hitting US$27.3355 an ounce, the highest intraday level since June 2021, while palladium and platinum edged higher.

The Bloomberg Dollar Spot Index was steady after a two-day drop.

Investors will closely watch non-farm payroll data on April 5 for further clues on the health of the US economy and the likely path of monetary policy.

Strong employment gains are expected, according to a Bloomberg survey. BLOOMBERG