The price of gold touched a fresh peak of Rs 65,298 per 10 gm on the Multi Commodity Exchange (MCX) on Thursday.

The surge came after the US dollar index fell to a five-week low, following the US Federal Reserve’s testimony in the US Senate.

In the international market, spot gold prices were hovering around $2,150 per ounce mark, after hitting a record high earlier.

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It may be noted that US Federal Reserve Chair Jerome Powell has confirmed in the US Congress that the much-awaited interest rate cut will begin this year as inflationary pressure on the US economy has eased.

“If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year,” US Fed chief Jerome Powell told the House of Financial Services Committee.

This not only led to a global stock market rally but also triggered profit booking in the bond and currency markets. The result was the US dollar index declining to a 5-week low.