Gold hovered near record levels on Friday and was on track for a weekly gain after the U.S. Federal Reserve's recent oversized interest rate reduction and on signs that further cuts were on the horizon.

Spot gold was up 0.7% at $2,604.50 per ounce by 0749 GMT after hitting a record high of $2,609.62. US gold futures rose 0.6% to $2,630.00, while silver gained 1.1% to $31.12

Bullion rose to a record high of $2,599.92 on Wednesday after the Fed began its easing cycle with a half-percentage-point cut. The Fed also projected a further half-point reduction by year-end, a full point next year and an additional half-point trim in 2026.