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FOMC announced 25-basis points rate cut on Wednesday

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November non-farm payrolls due on December 16

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Silver hits record high at $63.93/oz

(Recasts lede, adds quote and updates prices for AMERS

mid-session trading)

By Sarah Qureshi

Dec 11 (Reuters) -

Gold rose on Thursday to hit its highest level in more than

a month after the U.S. Federal Reserve's quarter-point rate cut

pushed the dollar lower, while silver surged to a fresh record

high.

Spot gold was up 1.2% at $4,275.39 per ounce, as

of 11:49 a.m. ET (16:49 GMT), reaching its highest level since

October 21. U.S. gold futures for February delivery

gained 1.9% to $4,303.90 per ounce.

Spot silver added 3.2% to $63.77 per ounce,

hovering near the session's record high of $63.93.

"Silver seems to be pulling gold up with it and it's

also pulling up platinum and palladium...there's a lot of

momentum behind it right now," said Marex analyst Edward Meir.

The U.S. dollar slipped to over seven-week low against a

basket of rival currencies, making greenback-priced gold more

affordable for overseas buyers.

"Inflation hasn't really come back down to the Fed's 2%

target, so, when you're lowering rates in an inflationary

environment that is still not optimum, and that's very bullish

for gold," Meir added.

The Federal Reserve on Wednesday delivered its third

consecutive quarter-point cut, while policymakers also signaled

a likely pause in further reductions as they monitor labor

market trends and inflation that "remains somewhat elevated".

Lower interest rates tend to be favorable to gold, as it is

a non-yielding asset.

U.S. President Donald Trump has advocated for lower interest

rates since the start of his second term in January, and his

nominee for the next Federal Reserve chair is expected to

maintain that stance. White House economic adviser Kevin Hassett

is currently viewed as the leading candidate for the position.

Investors now await the monthly U.S. non-farm payrolls

report, set to be released on December 16, for fresh cues on the

Fed's policy path.

Meanwhile, India's pension regulator on Wednesday permitted

investments in gold and silver ETFs for the country's pension

funds.

Elsewhere, platinum gained 2.5% to $1,698.10,

while palladium rose 1.3% to $1,494.88.