Gold steady near record high on US rate cut optimism

Gold prices held steady on Tuesday near a record high hit in the previous session, as expectations of a US interest rate cut next month boosted the precious metal’s appeal.

Spot gold fell 0.2% to $2,501.19 an ounce, having hit an all-time high of $2,509.65 on Friday.

US gold futures rose 0.1% to $2,540 an ounce.

Data released on Friday showed that US single-family home construction fell in July as higher mortgage rates and home prices kept potential buyers on the sidelines, suggesting inflation is turning lower.

Last week, strong retail sales figures and lower-than-expected jobless claims, along with moderate inflation data, helped restore confidence in the world’s largest economy.