Gold heads for weekly loss; spotlight on US inflation data
GOLD prices inched higher on Friday (Jul 26), but remained on track for a weekly loss, while traders awaited US inflation data for further cues on the trajectory of the Federal Reserve’s interest rate cuts.
Spot gold was up 0.2 per cent at US$2,368.89 per ounce, as at 0142 GMT, but was down more than 1 per cent for the week. US gold futures climbed 0.5 per cent to US$2,364.10.
Markets are awaiting the US personal consumption expenditure (PCE) data due at 1230 GMT. The PCE price index is the US Fed’s preferred measure of inflation.
Data on Thursday showed that the US economy grew faster than expected in the second quarter, but inflation pressures subsided, leaving intact expectations of a September interest rate cut from the Fed.
Non-yielding bullion’s appeal tends to shine in a low-interest-rate environment.
China’s net gold imports via Hong Kong slumped 18 per cent in June from the previous month, Hong Kong Census and Statistics Department data showed, as the recent surge in gold prices weighed on jewellery demand.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.41 per cent to 845.19 tons on Thursday from 841.74 tonnes from prior session.
On the geopolitical front, US Vice-President Kamala Harris pressured Israeli Prime Minister Benjamin Netanyahu to help reach a Gaza ceasefire deal, striking a tougher tone than President Joe Biden.
Spot silver was flat at US$27.96 per ounce, platinum gained 0.6 per cent to US$938.95 and palladium rose 0.5 per cent to US$911.50. REUTERS
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