Gold prices rose to an all-time high on Friday as a cocktail of factors ranging from a weaker dollar, growing expectations for a US interest-rate cut in September to geopolitical tensions in the Middle East bolstered demand for bullion.

Spot gold was up 1.3% to $2,487.66 per ounce by 09:30 am. Gold gained 2.5% so far this week. US gold futures rose 1.4% to $2,526.40.

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 after two weeks of extremely choppy trading as bulls finally impose their will,” Tai Wong, a New York-based independent metals trader, said.

“The $2,500 hurdle is likely to fall soon though attention will shortly focus on Fed Chair Powell’s speech at Jackson Hole a week from today to provide direction for a more detailed outlook on the upcoming rate cuts.”

The July releases of the producer price index and consumer price index this week indicated inflation was subsidising, which could keep the US Federal Reserve on track to start its monetary easing cycle with a 25-basis point rate cut next month.

Traders look forward to minutes from the Fed’s previous policy meeting and Fed Chair Jerome Powell’s outlook of the US economy next week.

In other news, the Israeli army on Friday ordered a fresh evacuation of areas in southern and central Gaza previously designated as a humanitarian safe zone, saying they had been used by Hamas as a base to attack Israel.