Gold prices (XAU/USD) climbs to an all-time high above the $2,300 psychological round mark during the early Asian session on Thursday. The weaker-than-expected US ISM Services PMI data for March and the speculation that the Federal Reserve (Fed) has reached its peak of the rate hike cycle boost yellow metal demand.

Gold gains momentum as markets expect the first rate cuts in June. According to the CME FedWatch Tool, markets are now pricing in nearly 62% odds of a rate cut at the Fed’s June 11–12 policy meeting. 

Market reaction

Gold price attracts some buyers above the $2,300 mark and has reached the record high of $2,305. At the time of writing, the gold price (XAU/USD) is trading around $2,298.04, down 0.11% on the day.