Gold, which tends to benefit from lower rates, rose as much as 1.2% before erasing gains after Fed Chair Jerome Powell said in a press conference that no one should see this as a “new pace.”

Gold prices climbed to a fresh record high on Thursday, with inflation data this week providing support even as some analysts believe bets for a Federal Reserve interest-rate cut next week have been fully priced into the precious metal.

Prices of gold have climbed 26 per cent in 2024, its biggest annual rise since 2010, as investors also sought to hedge uncertainties spurred by prolonged conflicts in the Middle East and elsewhere