Gold prices fell on Friday but were headed for a third straight quarterly rise as investors look to key US inflation data due later in the day, which could shed light on the Federal Reserve’s stance. Reserve regarding interest rate cuts.
FUNDAMENTALS
* Spot gold was down 0.3% at $2,321.39 per ounce at 0157 GMT. Prices are up about 4% for the quarter. The metal remained flat for both the week and the month.
* U.S. gold futures were down 0.2% at $2,332.10.
* The dollar rose 0.2%, making gold more expensive for holders of other currencies, while benchmark 10-year yields also rose on the day.
* The Personal Consumption Expenditures (PCE) price index report, due at 1230 GMT, is on investors’ radar for further guidance on the timing and size of possible rate cuts this year.
* The fading economic momentum was underlined by data showing business spending on equipment fell in May, while plunging exports widened the goods trade deficit.
* In the third gross domestic product estimate for the January-March quarter, the government confirmed that economic growth moderated sharply in the first quarter.
* U.S. Federal Reserve Governor Michelle Bowman reiterated Thursday that she is not yet ready to support a central bank rate cut, given that inflationary pressures are still elevated.
* Higher interest rates increase the opportunity cost of holding unprofitable bullion.
* Spot silver fell 0.5% to $28.91 an ounce, platinum rose 0.7% to $994.42 and palladium gained 1.5% to $943.22.
DATA/EVENTS (GMT) 0600 UK GDP QQ, YY Q1 0645 France CPI (EU-adjusted) Preliminary YY, MM June 0645 France CPI Preliminary MM NSA June 0645 France Producer Prices YY May 0755 Germany Unemployment Chg, SA Rate June 1230 US Consumption, Adjusted MM May 1230 Core PCE Price Index MM, YY May 1230 US PCE Price Index MM, YY May 1400 U Mich US Sentiment Final June (Reporting by Sherin Elizabeth Varghese in Bengaluru)
