U.S. firms point to slowing activity, Fed survey shows
Fed39;s Barkin says disinflation seems to be broadening

July 18 Reuters Gold prices rose on Thursday, hovering near a record high scaled in the previous session, as rising anticipation of a U.S. interest rate cut in September lifted demand for nonyielding bullion.

Spot gold was up 0.5 at 2,470.62 per ounce, as of 0641 GMT. Prices hit an alltime high of 2,483.60 on Wednesday. U.S. gold futures also climbed 0.5 to 2,473.10.

Decreasing interest rates and U.S. elections are two immediate factors likely to push gold beyond 2,500, as gold tends to benefit from economic and geopolitical uncertainty, said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.

Lower rates increase the appeal of nonyielding bullion.

Fed Governor Christopher Waller and New York Fed President John Williams both noted the shortening horizon toward looser monetary policy. Separately, Richmond Fed President Thomas Barkin said he is very encouraged on broadening declines in inflation.

Markets expect a 25basispoint reduction at the Federal Reserve39;s September meeting, according to CME39;s FedWatch Tool.

A Donald Trump presidency could ultimately be negative for investor demand in gold. His policies of tax cuts and more tariffs could ultimately reverse the recent falls in inflation, ANZ said in a note.

According to the World Gold Council, global physically backed gold exchangetraded funds saw the second consecutive month of…