• Gold price surges to historic $2,152.24 level, underpinned by Fed Chair Powell's hints at rate cuts this year.
• Declining US Treasury yields bolster bullion’s appeal with the market pricing in a higher likelihood of a June rate reduction.
• Escalating tensions between Israel and Hamas contribute to Gold's safe-haven demand amidst uncertain geopolitical climate.

Gold rallied for the fifth straight day and reached an all-time high (ATH) at $2,152.24 during the North American session amid US Federal Reserve Chair Jerome Powell's congressional testimony at Capitol Hill. At the time of writing, XAU/USD trades at $2,146.27, gains 0.87% ahead of Wall Street’s close.

The yellow metal rose sharply amid remarks by Jerome Powell, who said that the US central bank is ready to lower borrowing costs “at some point this year.” He added that the US economy is nowhere near falling into recession and expects inflation to continue to trend toward the 2% goal. Powell commented that the Fed would remain data-dependent and wouldn’t reduce rates until they [the Fed] are convinced that inflation moves sustainably to 2%.

Therefore, US Treasury bond yields are dropping, a tailwind for bullion. US Treasury yields along the short and long end of the curve dive, as seen on the 10-year benchmark note rate at 4.108%, down four basis points (bps). After Powell’s words, the swaps market shows odds at 67% for a 25-basis-point rate cut in June, up from 58% at the end of February.

Besides that, geopolitical tensions escalating in the Middle East between Israel and Hamas are a tailwind for the safe-haven status of Gold.