(April 4): Gold prices hit a new record high on Thursday, breaking above the US$2,300 per ounce ceiling, as recent comments from Federal Reserve officials cemented market expectations around US interest rate cuts.

Spot gold was down 0.3% at US$2,291.65 per ounce, as of 0943 GMT, taking a breather after hitting an all-time high of US$2,304.09 earlier in the session.

US gold futures fell 0.2% to US$2,311.20.

"There is big demand coming from Asia, particularly from China and solid demand from central banks. We have geopolitical risks and expectations around central banks cutting rates. All these factors are lifting gold prices higher," Carlo Alberto De Casa, a market analyst at Kinesis Money, said.

Fed officials including chair Jerome Powell on Wednesday continued focusing on the need for more debate and data before interest rates are cut, a move financial markets expect to occur in June.

Traders are currently pricing in about 59% chance that the Fed will cut rates in June, according to the CME FedWatch tool. Gold, which pays no interest, benefits when interest rates fall as this reduces the opportunity cost of holding bullion.

Focus now shifts to US non-farm payrolls for March due on Friday that could shed more light on the timing of first rate cut from the Fed.

Strong central bank buying and firm safe-haven inflows amid growing geopolitical tensions have boosted demand for gold, which has risen more than more 25% since October.

"Gold's blistering rally may have further room to run in the medium term," Singaporean bank OCBC said in a note.

"Historical evidence since 2001 showed that gold strengthened when Fed rate hike cycle ended and continued to extend its bullish run when Fed rate cut cycle gets underway. That said, we caution for the risk of a pullback."

Spot silver fell 0.6% to US$27.04 per ounce after scaling its highest since June 2021. Platinum rose 0.3% to US$939.60 and palladium slipped 0.9% to US$1,004.36.