"We’re not surprised by the outperformance of gold this week, and continue to see gold making new highs ahead," Weiheng Chen, Global Investment Strategist at JP Morgan Private Bank, said.
Gold prices were little changed on Thursday with a slightly weaker dollar lending some support, while investors awaited key US economic data for further insights into the Federal Reserve's policy path.
Spot gold was up 0.1 percent at US$3,739.22 per ounce, as of 0557 GMT. U.S. gold futures for December delivery were unchanged at US$3,769.60.
Safe-haven bullion, which tends to thrive in a low-interest-rate environment, had hit a record high of US$3,790.82 on Tuesday.
While Fed Chair Powell did not provide a clear timeline for rate cuts, Chen added that easing could come if US economic conditions weaken, noting that gold typically benefits from lower interest rates as falling yields reduce the opportunity cost of holding a non-interest-bearing asset.
Markets broadly expect two more 25-basis-point Fed rate cuts this year, in October and December.
"The move (gold's rise) may reflect expectations that the Fed intends to run the U.S. economy hot as it rebalances its focus to the labour market," said Ilya Spivak, head of global macro at Tastylive.
"Initial support levels line up around US$3,700 and US$3,600. Breaking resistance at the latest high near US$3,790 might expose US$3,870-US$3,875, followed by US$4,000."
On Wednesday, San Francisco Federal Reserve Bank President Mary Daly said she "fully supported" the Fed's decision to cut its policy rate last week and expects further reductions ahead.
STAFF REPORTER and REUTERS
