Sluggish U.S. economic statistics and Federal Reserve Chair Jerome Powell's warnings of rate cuts in the coming months if inflation eased drove gold prices to a new high on Thursday, poised for their sixth consecutive daily advance.
Gold climbed 0.3% to $2,155.42 per ounce at 0723 GMT. US gold futures rose 0.2% to $2,163.10.
At $2,161.09 earlier in the session, bullion reached a record high and appeared poised for its longest intra-day winning streak since November 2021.
Marcus Garvey, head of commodities strategy at Macquarie, said gold rallied due to modest U.S. data weakness, but the size of movement seemed abnormally huge, probably influenced by large futures purchasing that began on Friday.
Gold rose on Wednesday after Powell said interest rate reduction were inevitable "if the economy evolves broadly as expected," citing lowering inflation. Later today, Powell will talk.
Powell's comments and statistics showing a deteriorating labor market the same day lowered U.S. Treasury yields and the dollar, boosting gold's attractiveness.
If Friday's labor market data or next week's inflation data indicate weakness, technical levels suggest $2,300 as a short-term target, but prices will drop and consolidate, Macquarie's Garvey said.
Due to geopolitical uncertainty, central bank buying should continue. China's slowdown will limit global growth. In an unpredictable financial environment, gold will remain a secure investment for banks ", said BNP Paribas' Sharekhan commodity and currency head Jigar Pandit. Silver declined 0.4% to $24.08, platinum 0.3% to $904.83, and palladium 1.5% to $1,026.80 after rising more than 12% the previous session.
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