Gold rose to an all-time high on Thursday as the Federal Reserve hinted at two possible interest rate cuts this year, bolstering bullion's appeal amid ongoing geopolitical and economic woes.

Spot gold was up 0.1% at $3 049.89 an ounce as of 02:10 GMT. Bullion reached an all-time high of $3 055.96 earlier in the session.

US gold futures gained 0.6% to $3 058.40.

Gold is driven by "a lot of uncertain market situations, geopolitical tensions, weaker U.S. dollar, and expectations that interest rates will be cut later," said Dick Poon, general manager at Heraeus Metals Hong Kong.

The Fed held its benchmark overnight rate steady in the 4.25% to 4.50% range on Wednesday. Policymakers expect the central bank to deliver two quarter-percentage-point rate cuts by the end of 2025.

The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said.

Trump's tariffs, which have flared trade tensions, are widely thought to be inflationary and detrimental to economic growth.

The tariff uncertainty, the possibility of rate cuts and the resumption of tensions in the Middle East have contributed to gold's record rally, prompting bullion to notch 16 record highs so far in 2025, four of them above the $3 000 milestone.

The Israeli military resumed ground operations in central and southern Gaza as airstrikes killed at least 48 Palestinians, local health workers said.

Non-yielding gold is considered a hedge against global uncertainties, and thrives in a low interest rate environment.

"Given the very good performance in gold through Q1, I think a correction is not out of the question," said Nicholas Frappell, global head of institutional markets at ABC Refinery.

"However so far corrections have been relatively short-lived and well bid...$3 090~$3 100 may see some resistance."

Spot silver was steady at $33.81 an ounce, platinum inched up 0.1% to $994.05, and palladium edged up 0.1% to $957.42.