Gold prices are on track for a quarterly increase

28 Jun 2024 , 09:38 AM

Gold prices slipped lower on Friday, but were on track for their third consecutive quarterly increase, as investors awaited critical US inflation data due later in the day, which could shed light on the Federal Reserve’s stance on interest rate cuts.

The spot gold price was down 0.3% at $2,321.39 per ounce. Prices are up approximately 4% for the quarter. Bullion remained flat throughout the week and month.

Gold futures fell 0.2% to $2,332.10.

The dollar rose 0.2%, making gold more expensive for other currency holders, as benchmark 10-year yields crept higher for the day.

Investors are watching the personal consumption expenditures (PCE) price index report, which is scheduled at 1230 GMT, for fresh clues on the timing and magnitude of any rate reduction this year.

Data revealing that company spending on equipment fell in May, while a drop in exports increased the goods trade imbalance, highlighting the slowing economy.

In its third estimate of GDP for the January-March quarter, the government reaffirmed that economic growth slowed considerably in the first quarter.

U.S. Federal Reserve Governor Michelle Bowman reaffirmed on Thursday that she is still not ready to back a central bank rate drop while inflation remains high.

Rising interest rates raise the opportunity cost of keeping non-yielding bullion.

Spot silver declined 0.5% to $28.91 per ounce, while platinum rose 0.7% to $994.42 and palladium climbed 1.5% to $943.22.

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