Shafaq News/ Gold prices rose to anall-time high on Friday as a cocktail of factors ranging from a weaker dollar,growing expectations for a US interest-rate cut in September to geopoliticaltensions in the Middle East bolstered demand for bullion.
Spot gold was up 1.3% to $2,487.66per ounce by 09:30 a.m. EDT (1330 GMT). Gold gained 2.5% so far this week. USgold futures rose 1.4% to $2,526.40.
The dollar index fell 0.3% and wason track for a fourth week of losses, making gold more appealing for buyersoverseas.
"Gold surged to a freshall-time high after two weeks of extremely choppy trading as bulls finallyimpose their will," Tai Wong, a New York-based independent metals trader,said.
"The $2,500 hurdle is likely tofall soon though attention will shortly focus on Fed Chair Powell's speech atJackson Hole a week from today to provide direction for a more detailed outlookon the upcoming rate cuts."
The July releases of the producerprice index and consumer price index this week indicated inflation wassubsidising, which could keep the US Federal Reserve on track to start itsmonetary easing cycle with a 25-basis point rate cut next month.
Traders look forward to minutes fromthe Fed's previous policy meeting and Fed Chair Jerome Powell's outlook of theUS economy next week.
In other news, the Israeli army onFriday ordered a fresh evacuation of areas in southern and central Gazapreviously designated as a humanitarian safe zone, saying they had been used byHamas as a base to attack Israel.
Bullion is considered a hedgeagainst geopolitical and economic uncertainties and tends to thrive in alow-interest-rate environment.
Elsewhere, silver fell 0.2% to$28.32 per ounce and platinum rose 0.1% to $953.75. Palladium eased 0.2% to$942.25.
All metals were on track for weeklygains.
(Reuters)