Gold prices reach all-time high on Fed rate cut optimism

Gold prices have extended gains to reach a new all-time high on Wednesday, driven by optimism that the US Federal Reserve will lower rates as soon as September. Spot gold prices rose 0.5-percent to hit more than 2,480 dollars per ounce, while gold futures climbed to 2,478 dollars an ounce. Fed Chair Jerome Powell noted on Monday that June's lower-than-expected inflation boosted confidence in meeting the inflation target and added that the central bank will not wait for inflation to hit 2% before starting rate cuts. The monthly inflation rate dipped in June-- the first time in more than four years, putting the 12-month rate at 3-percent.