Gold prices remained steady on Friday, on track for a third consecutive quarterly gain following a U.S. inflation report that met expectations. This has raised hopes that the Federal Reserve may cut interest rates by September.
Spot gold was unchanged at $2,328.85 per ounce, with a quarterly gain of over 4%. U.S. gold futures also rose slightly to $2,339.60.
Market experts attribute the steady performance of gold to a gradual decline in inflation rates, which has led to lower bond yields and increased interest in gold as a safe-haven investment. Additionally, a decrease in U.S. Treasury yields has made gold more attractive to investors.
There is increasing speculation in the market that the Federal Reserve will cut interest rates by September and possibly again in December. This speculation has been fueled by a recent government report showing no increase in inflation based on the personal consumption expenditures index (PCE) from April to May.
In response to the data, traders are now pricing in a 68% chance of a rate cut in September, up from 64% before the release of the inflation figures.
Spot silver rose by 1.1% to $29.38, while platinum gained 2.5% to $1,012.03, both metals also on track for quarterly gains. However, spot palladium rose by 4.5% to $970.88 but is set for a third consecutive quarterly decline.
Overall, the trends in the precious metals market are influenced by economic indicators and market speculation regarding future interest rate cuts by the Federal Reserve.