BENGALURU: Gold rallied to a fresh record on Wednesday, building on stellar momentum driven mostly by bets for US monetary easing, while auto catalyst palladium popped back above the $1,000 mark for the first time since Jan. 12.

Spot gold gained 0.6% to $2,139.39 per ounce as of 1542 GMT after hitting an all-time high of $2,148.99 earlier in the session. US gold futures rose 0.3% to $2,147.60.

Silver added 1.2% to $23.97. On Wednesday, gold got an additional fillip as the dollar fell after Fed Chair Jerome Powell indicated a rate cut later this year.

Gold suffers when high US interest rates raise returns on competing assets such as bonds and boost the dollar, making the bullion costlier to buy with foreign currencies.

“There’s definitely been macro data that’s pushed us in this direction and the follow on to policy expectations from the Fed... but the response in the gold market has been multiples of what long-term fair value models suggest,” said Michael Hsueh, FX & Commodities Strategy analyst at Deutsche Bank.

Traders now see a 70% chance for a June Fed rate cut. “CTAs are now firing long on all cylinders in gold, with funds holding roughly 80% of their historic max long position,” Ryan McKay, senior commodity strategist at TD Securities, said in a note.