Powell said Friday that "the risks of both insufficient and excessive monetary tightening have become more balanced. However, he stressed that the Fed has no plans to cut interest rates at the moment."

Markets currently expect a 70 percent chance of a rate cut by the US Federal Reserve by next March, according to FedWatch from CME.

Markets viewed Jerome Powell's remarks as leaning toward monetary easing, sending down the dollar index and 10-year Treasury yields.

Analysts believe that gold prices are on track to reach new highs next year and may remain above $2000,<> levels, citing geopolitical uncertainty, potential weakness of the U.S. dollar and possible interest rate cuts.

Prices of the yellow metal posted gains for two consecutive months, as geopolitical tensions in the Middle East boosted demand for safe-haven assets, while expectations of interest rate cuts provided further support. Gold usually rises in periods of economic and geopolitical uncertainty due to its status as a reliable store of value.

Heng Kunhao, Head of Market Strategy, Global Economy Research and Markets at UOB, said: "The expected decline in both the US dollar and interest rates across 2024 is the main positive driver for gold. We expect gold prices to reach $2200,2024 by the end of <>," according to CNBC.

Nikki Shiles, head of metals strategy at precious metals company MKS Pump, said: "Simply put, there is less leverage this time compared to 2011 in gold... This raises prices to more than $2100,2200 and puts $<>,<> an ounce on the horizon."

Gold shines

Spot gold prices rose to new historic highs of $2110.8 an ounce, in early Monday trading, before giving up some of their gains to trade at $2084.

On Friday, gold touched $2075,09.7, surpassing the historic high recorded on August 2020, 2072, at $<>,<>, according to LSEG data from Reuters.

U.S. gold futures rose about one percent to $2107,60.<>.

Spot silver rose 0.1 percent to $25.45 an ounce, palladium fell 0.4 percent to $929.93 an ounce and platinum lost 0.1 percent to $999.35.

Bart Millick, head of commodity strategy at TD Securities, expects gold prices to average $2100,2024 in the second quarter of <>, with strong central bank purchases acting as a key catalyst in boosting prices.

According to a recent study by the World Gold Council, 24 percent of all central banks intend to increase their gold reserves in the next 12 months, as they grow pessimistic about the US dollar as a reserve asset.

"This means that demand from the formal sector is likely to increase in the coming years," Millick said.

He added that a possible monetary policy pivot by the Fed in 2024 may also be on the question. Low interest rates could weaken the dollar, and a weaker dollar makes gold cheaper for international buyers, leading to increased demand.