Mumbai, 29 Jun (Commoditiescontrol): Gold prices remained stable on Friday, poised for a third consecutive quarterly gain following a key U.S. inflation report that aligned with expectations, fueling hopes of a potential Federal Reserve interest rate cut by September.
Spot gold held firm at $2,326.47 per ounce, with U.S. gold futures inching up 0.1% to settle at $2,339.60. The metal has gained over 4% this quarter. A decline in U.S. Treasury yields further supported gold, making the non-yielding bullion more attractive to investors.
Market optimism surged on Friday, with increased bets that the Federal Reserve might reduce interest rates by September and again in December. This sentiment was driven by the Personal Consumption Expenditures (PCE) Index, which showed that inflation remained flat from April to May. The PCE had previously indicated a 0.3% increase in April, while consumer spending rose moderately.
Traders are now pricing in a 68% chance of a Fed rate cut in September, up from 64% prior to the release of the inflation data, according to the CME FedWatch tool. San Francisco Federal Reserve Bank President Mary Daly, a member of the 2024 Federal Open Market Committee, remarked that the latest inflation data was "good news that policy is working."
In other precious metals, spot silver rose 0.3% to $29.15 per ounce, and platinum increased by about 1% to $997.13, with both metals set for quarterly gains. Spot palladium surged approximately 5% to $975.45 but was still on track for its third consecutive quarterly decline.
The steady performance of gold and other precious metals underscores ongoing investor interest amid a complex economic backdrop and potential shifts in monetary policy. As market participants continue to monitor economic indicators and central bank actions, the trajectory of precious metals will likely remain a focal point.
(By Commoditiescontrol Bureau: 09820130172)
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