After US economic data showed a slowing in inflation, gold prices continued to rise on Friday, helped by a weaker dollar and Treasury yields. However, the Federal Reserve’s aggressive interest rate outlook kept bullion on course for a weekly loss.<\/p>\n
As of 9:42 a.m. ET (1442 GMT), spot gold was up 0.8% at $2,614.67 an ounce, while US gold futures were up 1% at $2,633.20.<\/p>\n
Gold became more affordable for foreign buyers when the currency dropped 0.4% from its two-year peak, and Treasury yields slightly decreased from a peak above six months.<\/p>\n
According to the data, monthly inflation slowed in November after no improvement in the preceding months. Following an unrevised 0.2% advance in October, the personal consumption expenditures (PCE) price index increased by 0.1% last month.<\/p>\n
“The personal income, personal spending, and PCE figures all showed lower-than-expected results. Phillip Streible, chief market strategist at Blue Line Futures, stated, “We’re seeing people re-establish positions and return to the gold market here.”<\/p>\n
“It’s still far too early to tell, but after two interest rate cuts that were priced in and led to the sharp decline in gold prices, there is now a chance for three interest rate cuts under a more accommodating policy.” Bullion is down 1.3% so far this week after the Fed’s “dot plot” on Wednesday indicated less easing than anticipated in September, with only two 25-bps rate reduction by 2025.<\/p>\n
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