Gold prices closed the week by maintaining their fourth monthly gain
Istanbul, June 1 (Hibya) - Although gold bullion prices eased on Friday as investors absorbed the US inflation data, they closed the week by maintaining their fourth monthly gain, supported by the expectation that the US Federal Reserve will cut interest rates.
Spot gold gave up earlier gains to trade down 0.7 percent at $2,325.67 per ounce. U.S. gold futures settled 0.9 percent lower at $2,346.4. However, bullion was up 1.8 percent for the month. On May 20, prices hit an all-time high of $2,449.89.
Data showed that the Personal Consumption Expenditures (PCE) Price Index rose by 0.3 percent in April, which aligns with forecasts by economists polled by Reuters. In the 12 months through March, PCE inflation gained 2.7 percent as expected.
Traders on Friday added to bets the Fed would deliver a first-rate cut in September after a U.S. Commerce Department report showed inflation may have made a little progress toward the Fed’s 2 percent goal last month. While gold is often considered a safeguard against inflation, higher rates increase the opportunity cost of holding the non-yielding asset.
Spot silver dropped 2.9 percent to $30.28 per ounce but logged its biggest monthly gain since November 2022. Platinum climbed 1.2 percent to $1,036.44, and palladium slipped 4.5 percent to $905.24.
Albania News Agency
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