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Ammon News - Gold surged to an all-time peak on Wednesday, driven by mounting hopes of a U.S. interest rate cut in September after recent comments from Federal Reserve officials.

Spot gold was steady at $2,466.02 per ounce, as of 0711 GMT, after hitting a record peak of $2,482.29. U.S. gold futures gained 0.1% to $2,470.20.

"Gold reached a new high watermark as investors position for the arrival of a lower interest rate environment. The $2,500 (range) is the next immediate target, though if the current momentum can be sustained we could be looking at prices further north from here before year-end," said Tim Waterer, KCM Trade's chief market analyst.

Safe-haven buying of gold could ramp up again due to the U.S. elections and global geopolitical risks, he added.
Markets are expecting a Fed rate cut of at least 25 basis points in September. The allure of non-yielding bullion rises when interest rates fall.

Fed Chair Jerome Powell said on Monday recent inflation readings "add somewhat to confidence" that the pace of price increases is returning to the central bank's target in a sustainable fashion, suggesting a turn to rate cuts may not be far off.

Fed Governor Adriana Kugler on Tuesday also expressed cautious optimism that inflation is returning to the U.S. central bank's 2% target.

"If (gold) prices retrace, $2,450 near its previous record high seems like a tempting level for bulls to reload for its next leg higher," City Index senior analyst Matt Simpson said.

Top consumer China still has strong appetite for official gold purchases despite pausing in May and June, amid low holdings and global tensions, according to a policy insider, industry experts and data.

Silver fell 2.1% to $30.73 per ounce, platinum lost 0.3% at $997.27 and palladium added 0.5% to $963.83.

Reuters