Gold pauses after hitting all-time highs above $2,500
Bullion hit a record high of $2,509.65 on Friday
Gold to reach $2,600/oz by the end of 2024 - UBS analyst
Minutes of Fed's July FOMC meeting due Wednesday
Recasts as of 1011 GMT
By Sherin Elizabeth Varghese
Aug 19 (Reuters) -Gold eased on Monday after powering to an all-time high above the important $2,500 per ounce level in the last session on strong safe-haven demand and expectations of an imminent U.S. rate cut as investors seek more cues on the quantum of cuts.
Spot gold XAU= was down 0.4% at $2,496.46 per ounce, as of 1011 GMT, just about $13 shy of the record high of $2,509.65 hit on Friday. U.S. gold futures GCcv1 edged 0.1% lower to $2,534.80.
"Despite gold having hit a new record high, we expect prices to move even higher over the coming months, with prices expected to reach $2,600/oz by the end of the year," UBS analyst Giovanni Staunovo said.
"All eyes will be on the speech of Powell at Jackson Hole on Friday and any indication of an imminent rate cut," Staunovo said adding that he expects Powell to open the door for a rate cut, although more for a 25 bps cut than a 50 bps cut.
The market will also scan minutes of the Fed's July policy meeting on Wednesday.
Last week, strong U.S. retail sales print and lower-than-expected unemployment claims, along with mild inflation data, restored confidence in the world's largest economy.
Traders expect U.S. Fed will cut rates next month and are fully pricing in a 25-basis-point rate cut in September, with a 28.5% chance of a 50 bp move, according to CME FedWatch tool.
Bullion has surged over 20% this year, fueled by expectations of U.S. interest rate cuts this year, coupled with rising geopolitical tensions and strong central bank buying.
Demand for gold remains potent as geopolitical tensions, particularly in the Israel-Iran-Hamas conflict, is driving safe-haven demand, Achilleas Georgolopoulos, investment analyst at forex broker XM, wrote in a note.
Elsewhere, spot silver XAG= fell 0.2% to $28.95 per ounce, platinum XPT= eased 0.3% to $951.75 and palladium XPD= shed 0.9% to $942.50.
Gold at all time high https://reut.rs/3McHS3E
Spot gold price in USD per oz https://reut.rs/3WTIaBr
Reporting by Sherin Elizabeth Varghese in Bengaluru, additional reporting by Swati Verma; Editing by Shailesh Kuber
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