Market observers are confident that the Fed will cut interest rates before September. "The signs of slowing inflation are the catalyst, followed by weak economic data," wrote Daniel Hynes, senior commodity strategist at ANZ Bank in a report. Gold has hit record highs in recent months, as it is attractive as a safe-haven asset amid escalating tension in the Middle East and central banks buying gold. Vivek Dhar, head of mining and energy commodities research at the Australia Commonwealth Bank, said that "gold can find support under any circumstances this year," he said. These driving factors have withstood the pressure of a strong dollar, which is mainly due to the market's postponement of expectations for rate cuts." He added that by the end of this year, the price of gold may rise above the bank's predicted $2,500 per ounce.