NEW YORK: Gold prices soared to an all-time high on Friday as the dollar weakened on growing expectations for an interest-rate cut from the Federal Reserve in September, and as tensions in the Middle East bolstered demand for bullion.

Spot gold was up 1.5% to $2,493.66 per ounce by 12:19 p.m. EDT (1619 GMT), after hitting a record high of $2,500.99 earlier. US gold futures rose 1.6% to $2,532.10. Bullion has risen 2.6% this week.

The dollar index fell 0.3% and was on track for a fourth week of losses, making gold more appealing for buyers overseas. “Gold surged to a fresh all-time high and breached $2,500 after two weeks of extremely choppy trading as bulls finally impose their will,” Tai Wong, a New York-based independent metals trader, said.

“Attention will now shift to focus on Jackson Hole and Fed Chair Powell’s speech a week from today to provide a more detailed outlook on the shape of the upcoming rate cuts.” US Federal Reserve Chair Jerome Powell is scheduled to deliver remarks on the economic outlook next Friday, the first full day of the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming.

The July releases of the producer price index and consumer price index this week indicated inflation was subsiding, which could keep the Fed on track for a 25-basis-point rate cut next month.

Fed Bank of Chicago President Austan Goolsbee said the US economy is not showing signs of overheating, so central-bank officials should be wary of keeping restrictive policy in place longer than necessary.

“Ongoing geopolitical strife and potential escalation that Iran could get involved, and the war in Ukraine, those factors all contribute to safe-haven demand for gold,” said Everett Millman, chief market analyst with Gainesville Coins.