Gold can hit 2,550 levels in midlonger term, says analyst
Fed39;s Daly says quarterpercentage point cut next month likely

Aug 27 Reuters Gold prices were little changed on Tuesday, but held above the 2,500 perounce psychological level on investor optimism for imminent U.S. rate cuts and lingering concerns about the Middle East conflict.

Spot gold was nearly unchanged at 2,515.51 per ounce, as of 0610 GMT. Prices have risen more than 21 this year, hitting a record high of 2,531.60 on Aug. 20.

U.S. gold futures fell 0.2 to 2,551.00.

A September U.S. rate cut has been set in stone, but the debate revolving around its size may prompt a waitandsee mode as investors look forward to upcoming economic data to anchor their views, said IG market strategist Yeap Jun Rong.

Traders see a 70 chance of a 25basispoint bp rate cut and about 30 probability of a bigger 50bp reduction, according to the CME FedWatch tool.

A low interest rate environment tends to boost nonyielding bullion39;s appeal.

San Francisco Federal Reserve President Mary Daly said a quarterpercentage point cut in borrowing costs next month was likely.

We expect the upward trend for gold prices to persist, given its positive performance in past Fed rateeasing cycles, healthy central bank demand and its status as a good hedge against geopolitical and economic risks, Yeap said.

Residents of Lebanese cities felt only partial relief on Monday that one of the biggest exchanges of fire between armed group…