Gold hit a new all-time high as the dollar declined after the latest US economic data showed softer-than-expected growth at the end of last year.

Inflation-adjusted gross domestic product increased an annualized 2.3% in the fourth quarter after rising 3.1% in the prior three-month period, according to the government’s initial estimate published Thursday. The median forecast in a Bloomberg survey of economists called for a 2.6% growth.

The greenback declined after the report, sending bullion as much as 1.1% higher to $2,790.19 an ounce — surpassing its previous all-time high set in October. A weaker dollar makes bullion more appealing for investors holding other currencies as it’s priced in the US currency.

The precious metal’s latest attempt to score a new high “most certainly occurred after the softer than expected GDP print which has softened the dollar further,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S. “If softer growth and lower prices can be maintained, the door for additional cuts will be left wide open.” Lower rates typically benefit gold as it pays no interest.

Policymakers held rates steady at the conclusion of their first meeting of the year Wednesday, with Federal Reserve Chair Jerome Powell saying that officials won’t rush to lower rates as they are waiting to see further progress on inflation.

Spot gold rose 1% to $2,788.86 an ounce as of 10:19 a.m. in New York.

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