Gold prices surged to record highs on Wednesday due to increasing expectations of a US interest rate cut in September, following recent statements from Federal Reserve officials. Market participants anticipate a reduction of at least 75 basis points this year. The increasing expectations for a faster and earlier monetary policy easing could continue to support gold toward new highs. Rates are expected to keep declining well into next year and could support the market.

In this regard, Federal Reserve Governor Adriana Kugler cautiously expressed optimism on Tuesday, noting that inflation is heading toward the central bank's 2% target, echoing remarks made by Fed Chair Jerome Powell on Monday.

Meanwhile, Shanghai Futures Exchange (SHFE) gold prices are approaching their previous highs from early 2024, indicating renewed interest among Chinese traders. This trend could further give a boost to gold prices.

Additionally, the uncertainty surrounding the upcoming US elections could continue to impact sentiment and could fuel demand for safe-haven assets like gold. As elections approach, investors could increasingly turn to gold to hedge against unforeseen results.