Gold hit a new record high as investors grew more confident the Federal Reserve will cut interest rates this year, even after data showed a slight uptick in the key inflation report, AFP reported.
The precious metal has enjoyed strong buying interest this year as the US central bank hints at easing lending conditions.
It hit a new high of $2,265.73 on April 1, according to Bloomberg.
On March 29, the closely watched personal consumption expenditure index - the Federal Reserve's preferred gauge of inflation - showed a small year-on-year increase in March from February, although the core gauge edged down slightly.
Federal Reserve Chairman Jerome Powell said the report was "broadly in line with our expectations" and that policymakers were on track to meet their long-term inflation target of 2 percent.
He added that while the latest inflation data was higher than the Fed would have liked, the February data was "definitely more in line with what we want to see."
The data did not appear to have much impact on traders' expectations of a rate cut in June, although Powell warned that they were unlikely to fall to the levels seen since the 2008 global financial crisis.
Adding to the upward pressure on prices is the demand for it as a safe haven in times of turmoil due to rising geopolitical tensions linked to fears that Israel's war against Hamas in Gaza will spread further.
An airstrike in Lebanon on March 31 further inflamed tensions, with Israel saying a commander of a Hezbollah missile unit had been "liquidated".
For months, Israel and the Iran-backed group have exchanged cross-border fire almost daily.
Traders are also closely following the development of the long-standing conflict in Ukraine.
Because bullion doesn't generate any interest, they benefit when central banks cut borrowing costs because their safe-haven status makes them more attractive to investors. /BGNES