Gold surged on Thursday to an unprecedented peak, continuing its remarkable upward trend for the week. The surge was fueled by growing expectations of U.S. monetary easing, further bolstering the ongoing positive momentum for gold driven by central bank purchases and increased demand for safe-haven assets.

Spot gold edged up by 0.4% at $2,156.93 per ounce, while gold futures steadied at 0.2% to $2,165.2 per ounce.

Powell stated that the Federal Reserve is approaching a point where it will soon have sufficient confidence in the trajectory of inflation toward the Fed's 2% target, allowing for the consideration of initiating interest-rate cuts.

In a low-interest rate setting, the diminished opportunity cost of holding gold, which yields no interest, exerts downward pressure on the dollar. This, in turn, makes gold more affordable for international buyers.

Gold prices are being propelled by expectations of impending rate cuts, as noted by Joseph Cavatoni, a market strategist at the World Gold Council.

The U.S. non-farm payrolls report scheduled for Friday could potentially provide additional guidance for the market's trajectory.