Spot gold gained 0.3% to $2,372.25 per ounce, but was 1% lower so far this week
Gold prices regained some ground on Friday after dropping sharply in the previous session, ahead of a key U.S. inflation figure that could offer more hints on when interest rate cuts will start.
Spot gold gained 0.3% to $2,372.25 per ounce by 0928 GMT, but was 1% lower so far this week. Prices had hit their lowest since July 9 on Thursday after stronger-than-expected U.S. economic growth data.
That’s a bearish factor for gold prices, which tend to fare worse during times of economic strength when other assets perform more positively, according to Frank Watson, market analyst at Kinesis Money.
Gold prices are 4.5% lower since they reached a record high of $2,483.60 on July 17 on growing optimism for a rate cut from the Fed in September.
The U.S. personal consumption expenditure (PCE) data for June – the Federal Reserve’s preferred gauge of inflation – is due at 1230 GMT.
With non-yielding bullion still 15% higher so far this year, there are signs that high prices and seasonal factors have muted demand in top consumer China.
The country’s net gold imports via Hong Kong declined 18% in June from May, when they had been at their lowest in 10 months. Swiss June gold exports to China dropped to the lowest level since May 2022.
In India, another major gold consumer, physical demand has been also impacted by high prices, although the market expects demand to find support from this week’s reduction of the state gold import tax to the lowest in 11 years.
On the technical front, spot gold price is supported by the 50-day moving average of $2,359.
