Gold held near a record high as traders waited for a US inflation print that may offer clues on the Federal Reserve’s rate-cutting path.
Bullion was trading around $2,520 an ounce in Asia hours on pace for a second monthly gain ahead of the core personal consumption expenditures price index due later Friday. The report is expected to show the three-month annualized rate of core inflation down to 2.1%, just above the central bank’s 2% target, which would support the case for rate cuts. Lower borrowing costs typically benefit gold, which doesn’t pay interest.
Traders were also assessing Thursday’s upbeat US growth data, which suggested the Fed will be able to engineer a so-called soft landing for the economy as it prepares to ease policy next month. Fed Chair Jerome Powell said last week that the “time has come” to lower interest rates.
Gold up more than 20% this year has been supported as confidence has grown the US central bank is about to cut interest rates for the first time since 2020. Robust over-the-counter purchases and strong haven demand amid conflicts in the Middle East and Ukraine also helped the advance.
Spot gold edged 0.1% lower to $2,518.66 at 8:07 a.m. in Singapore, after peaking at a record high of $2,531.75 last week. It was on track for a monthly gain of almost 3%. The Bloomberg Dollar Spot Index little changed. Silver and platinum slipped, while palladium climbed.
Source : Bloomberg
