-Gold surges to new all-time high above $2,600, fueled by expectations of further Fed rate cuts. -Safe-haven demand spikes due to escalating tension between Israel and Hezbollah. -Fed Governor Waller backs 50 bps rate cut; however, dissenting Fed member Michelle Bowman prefers a smaller cut to guard against declaring an early win on inflation. Gold prices climbed past $2,600, recording new all-time highs amid increasing speculation that the Federal Reserve (Fed) will continue to lower borrowing costs and heightened tensions between Israel and Hezbollah in the Middle East. The XAU/USD trades at $2,621, up 1.37%. Risk aversion is the game's name, which is portrayed by Wall Street’s three leading indices all posting losses between 0.26% and 0.31%. Fed Governor Christopher Waller stated that cutting 50 basis points was appropriate, citing expectations that the August Personal Consumption Expenditures (PCE) Price Index would be very low. Waller added that inflation is softening more rapidly than anticipated, which is concerning to him. He also noted that the Fed could take further action if the labor market deteriorates or inflation data soften quickly. Meanwhile, correlations are not playing a huge role as US Treasury yields rise with Gold prices and the Greenback. The US 10-year Treasury note yields 3.726%, up by one and a half basis points. The US Dollar Index (DXY), which tracks the American currency’s value against the other six, advanced some 0.08% to 100.71. A scarce economic schedule in the US left Gold’s direction on the shoulders of additional Fed speakers. Michelle Bowman dissented to a 50 bps cut. Although it was appropriate to adjust the policy, she preferred a smaller cut, as risks on the decision could be interpreted as a “declaration of victory on inflation.