Spot Gold set for weekly loss as investors await US PCE data

Spot Gold edged higher on Friday, but looked set for a weekly decline, as market players awaited the key US PCE inflation report that may provide further clues on the timing of the Federal Reserve’s first rate cut.

Annual core PCE inflation probably eased to 2.5% in June, according to market consensus, from 2.6% in May – the lowest level since March 2021.

Yesterday data showed that the US GDP had expanded at a faster pace than expected in the second quarter, by 2.8% YoY, but inflation pressures had eased. The data did not alter market expectations of a Fed rate cut in September.

“Currently, the precious metal is seeing a cool-off period before prices potentially start marching higher in the last quarter of this year,” Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet, was quoted as saying by Reuters.

“With near-term support at $2,280, we believe gold can hit $2,680 by the end of this year when we start seeing rate cuts,” Sachdeva added.

As of 6:41 GMT on Friday Spot Gold was edging up 0.20% to trade at $2,368.92 per troy ounce.

The precious metal was poised to register a 1.34% weekly loss.

Gold Futures for delivery in August were up 0.54% on the day to trade at $2,366.20 per troy ounce.

Elsewhere, Silver Futures for delivery in September were edging down 0.13% to trade at $27.938 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching down 0.07% to 104.326 on Friday.