Gold prices rose on Thursday after hitting a record high in the previous session, as the U.S. Federal Reserve delivered a super-sized interest rate cut.

Gold climbed to a record new all time high after another faster-than-forecast US inflation print and an uptick in applications for unemployment benefits substantiated bets that the Federal Reserve will cut interest rates next week.

Gold futures experienced a modest decline in New York and Globex trading today, with the most active December contract settling at $2,540.30, down $5.50 or 0.22% as of 5:08 PM EDT.

Gold and silver prices are posting gains in midday U.S. trading Monday, with silver solidly up. The precious metals bulls are getting support from ideas of dovish central banks following last Friday’s downbeat U.S. jobs report and ahead of this week’s monetary policy meeting of the European Central Bank. Gains in gold are being limited today by a higher U.S. dollar index. December gold was last up $5.40 at $2,529.80 and December silver was up $0.457 at $28.265.

Gold prices rose to near one-week highs on Thursday, on the back of a weaker U.S. dollar and lower yields after signs of labour market losing steam led investors to expect a super-sized rate cut from the Federal Reserve this month.

Commodities are often seen as a safer go-to investment than stocks during times of economic strife as they make up the base materials that fuel the engines of society, but according to Goldman Sachs, the current environment is risky for most popular commodities, and gold offers the best protection against the loss of value.

Gold traders are taking it easy on the first trading day of the week because there are a number of important economic events that will impact the precious metal price. The dollar index has shown strength in light of recent data, but gold traders are still very optimistic that gold prices will continue to move higher given that the precious metal has remained above important price points in the past week.

The number of Americans filing new applications for jobless benefits slipped last week. GDP increased at a 3.0% annualised rate last quarter, revised up from the 2.8% rate reported last month, the Commerce Department's Bureau of Economic Analysis said in its second estimate of second-quarter GDP on Thursday.

In a remarkable display of resilience, gold futures have once again etched its name in the annals of financial history, closing at an unprecedented $2,560.00. This latest achievement, marked by a $6.40 or 0.25% gain in the most active December contract, underscores the enduring appeal of gold as a store of value.

Gold holds above $2,500 after Federal Reserve chair Jerome Powell signalled that time has come for interest-rate cuts.