• Gold hits new all-time high at $2,586 amid rising expectations of a significant Fed rate cut, with a 43% chance of a 50 bps reduction.
• US Treasury yields fall, US Dollar Index drops to 101.09, boosting Gold's ascent.
• Global ETFs experience strong inflows; improved US Consumer Sentiment and lower inflation expectations prompt speculation on more Fed easing.

Gold prices surged to a new all-time high (ATH) of $2,586 and are set to extend their gains as the US Dollar weakens on Friday. Expectations for a bigger interest rate cut by the Federal Reserve (Fed) boosted the non-yielding metal, with talks that it could hit the $3,000 milestone. The XAU/USD trades at $2,582 at the time of writing, posting gains of almost 1%.

According to CME FedWatch Tool data, traders have increased the odds for a 50-basis-point (bps) rate cut by the Fed. A news article by Fed watcher  Nick Timiraous at The Wall Street Journal, along with comments from former New York Fed President William Dudley, sparked a jump from 27% to 43%, while estimates for a 25 bps cut dropped from 73% to 57%.

Therefore, US Treasury yields tumbled and undermined the Greenback. The US Dollar Index (DXY), which measures the buck’s performance against another six currencies, dropped 0.15% to 101.09.