Gold prices fell slightly in Asian trade on Friday, but were sitting on strong gains from the prior session as softer-than-expected U.S. inflation data ramped up bets on a September interest rate cut.
The yellow metal blew past the closely-watched $2,400 an ounce level on Thursday and was less than $50 away from a record high, as it benefited from a sharp drop in the dollar. Gold was also set for a strong weekly performance.
Spot gold fell 0.3% to $2,408.52 an ounce, while gold futures expiring in August fell 0.3% to $2,413.75 an ounce by 00:06 ET (04:06 GMT).
Spot prices were set to add about 0.7% this week, with a bulk of gains coming on Thursday.
Consumer price index data released on Thursday read a touch lower than expected, driving up hopes that cooling inflation will give the Fed more confidence to begin cutting rates.
The dollar and Treasury yields sank on this notion, benefiting metal markets. Traders were seen pricing in an over 82% chance for a 25 basis point cut in September, up from last week’s chances of about 64%.
Source : Investing.com
