Federal Reserve Chairman Jerome Powell said on Friday that the latest US inflation data are “consistent with what we want to see.”
Traders expect, by 69 percent, that the US Federal Reserve will cut interest rates in June, according to the FeedWatch tool of the CME Group.
Lower interest rates enhance the opportunity to hold gold.
Market movements
By 4:07 GMT, gold in instant transactions rose 1.33 percent to $2,262.43 per ounce, and gold recorded a record high of $2,265.73 per ounce earlier in the session.
US gold futures rose 1.98 percent to $2,282.55 per ounce, and reached a record high of $2,286.35 per ounce earlier in the session.
The dollar index fell 0.1 percent against a basket of competing currencies, making gold more attractive to holders of other currencies.
As for other precious metals, silver rose in spot transactions by one percent to $25.22 per ounce.
Platinum increased 0.6 percent to $913.85 per ounce.
Palladium rose 0.3 percent to $1,018.22 per ounce.
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