Gold prices were little changed on Friday but were poised for a third straight quarterly rise as investors awaited U.S. inflation data for fresh clues about the Federal Reserve’s interest rate stance.
Spot gold was nearly unchanged at $2,328.42 per ounce as of 0907 GMT. Prices have gained about 4% in the quarter.
U.S. gold futures rose 0.1% to $2,338.80.
“Gold has managed to hold steady so far, with the current consolidation phase so shallow that hedge funds that bought into the rally in February and March have not yet been challenged,” said Ole Hansen, head of gold strategy raw materials of Saxo Bank.
In May, the metal rose to all-time highs as a cocktail of factors, from rate cut expectations to Chinese stimulus measures and geopolitical tensions, boosted demand.
“As long as the metal stays above $2,200, I don’t see the risk of a long forced liquidation phase. Incoming data will be key, but overall I see no reason why gold can’t reach $2,500 before the end of the year, supported by multiple factors,” Hansen added.
US personal consumption expenditure (PCE) numbers, the Fed’s preferred measure of inflation, are due at 1230 GMT.
A soft set of PCE data is needed to keep hopes of Fed easing alive and further support gold, said Matt Simpson, senior analyst at City Index.
Gold rose more than 1% in the previous session after data showed a slowdown in U.S. economic activity.
Meanwhile, Fed Governor Michelle Bowman maintained her stance that she is not yet ready to support a central bank rate cut with inflation pressures still high.
Spot silver rose 0.8% to $29.28, while platinum gained 1.8% to $1,005.20. Both metals posted quarterly gains.
Spot palladium rose 3.6% to $962.50.
