Picture used for illustrative purposes only.

Gulf Today, Staff Reporter

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

In the UAE the price of the 24K variant of the yellow metal jumped Dhs5.25 per gram to Dhs278.25 per gram on Thursday morning as compared to yesterday’s close of Dhs273 per gram.

The 22K rised to Dhs257.50, 21K to Dhs249.25 and 18K to Dhs213.75 per gram.

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

US gold futures fell 0.2% to $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.