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Gold scaled a record high moving further above $2,100 in a rally sparked by growing bets for a US interest rate cut in June and on safe-haven demand due to the conflict in the Middle East, says Manav Modi, Analyst, Commodity and Currency, Motilal Oswal Financial Services.

A wider robust fundamental backdrop added support, including strong physical demand in Asia and central bank purchases, he said.

Gold, which is looked as a store of value during times of political and financial uncertainty, has climbed by over $300 since the Israel-Hamas war. However, updates regarding ceasefire and an ease off in the war will be important to keep an eye on. US Services PMI and factors data were reported lower than expectations. After a series of weaker economic data last week, focus now shifts to US labour market data scheduled this week, which if reported lower than expectations could further increase gains for bullions, he said.

Jateen Trivedi, VP Research Analyst, LKP Securities, said gold prices experienced an uptick driven by growing speculation that the US Federal Reserve will cut interest rates in June. This rise was fueled by signs of slowing industrial and construction spending in the United States, coupled with a decrease in inflationary pressures.

Additionally, heightened geopolitical tensions globally have dampened the appetite for short-selling, thereby bolstering gold's attractiveness as a buy-on-dip asset, he said.

Market sentiment, as reflected in the CME Fed Watch Tool, currently indicates a 71 per cent expectation for a Fed interest rate cut in June. With this backdrop, gold prices appear poised to reach the 65000 levels before the end of March, he sai