Gold hits record high on US rate cut bets
July 17 (Reuters) -Gold prices scaled an all-time high on Wednesday, with recent comments from Federal Reserve officials boosting bets of a U.S. interest rate cut in September.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $2,470.89 per ounce, as of 0046 GMT, after hitting a record peak of $2,473.18 earlier in the session. U.S. gold futures GCcv1 rose 0.3% to $2,473.70.
* Markets are fully pricing in a rate cut of at least 25 basis points by the Fed at its September meeting, according to CME's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.
* Fed Chair Jerome Powell said on Monday recent inflation readings "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest 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.
* The International Monetary Fund said on Tuesday that the global economy is set for modest growth over the next two years amid cooling activity in the United States, a bottoming-out in Europe and stronger consumption and exports for China, but risks to the path abound.
* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.66% to 842.02 tonnes on Tuesday from 836.53 tonnes on Monday. GOL/ETF
* Spot silver XAG= fell 0.4% to $31.26 per ounce, platinum XPT= firmed 0.1% to $1,000.62 and palladium XPD= gained 0.4% to $963.22.
DATA/EVENTS (GMT)
0600 UK Core CPI YY June
0600 UK CPI YY June
0600 UK CPI Services MM June
0900 EU HICP Final MM, YY June
1230 US Housing Starts Number June
1315 US Industrial Production MM June
1800 US Federal Reserve issues the Beige Book of economic condition
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu
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