Fed39;s Kugler cautiously optimistic inflation headed to 2 target
Traders see 25 basis points Fed rate cut in September
Next immediate target for gold is 2,500 range analyst
Silver down more than 1

July 17 Reuters Gold prices rose to an alltime 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 2,468.55 per ounce, as of 0456 GMT, after hitting a record peak of 2,482.29. U.S. gold futures gained 0.3 to 2,474.50.

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 yearend, said Tim Waterer, KCM Trade39;s chief market analyst.

Particularly, if we start seeing some more favourable U.S. CPI prints, which could make the Fed more dovish on rates than is already priced in.

Markets are expecting a rate cut of at least 25 basis points by the Fed at its September meeting. The allure of nonyielding bullion tends to rise 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 bank39;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…