Gold tops US$2,500 for first time

WASHINGTON: Gold topped US$2,500 an ounce for the first time, bolstered by hopes the US Federal Reserve (Fed) is edging closer to cutting interest rates.

Spot bullion climbed as much as 2.2% last Friday, exceeding the previous record set last month, as a disappointing reading on the United States housing market reinforced expectations of fast and deeper cuts by the Fed. Lower rates generally are positive for gold as it pays no interest.