Spot gold added 0.2 per cent at $2,039.63 per ounce after marking a more than $60 rise in November – its second consecutive monthly gain
Gold prices looked set to mark a third consecutive weekly gain on Friday, after data showing cooling inflation strengthened speculations for a rate cut in the US, with traders now looking forward to comments from Federal Reserve’s Chair Powell later in the day.
Spot gold added 0.2 per cent at $2,039.63 per ounce by 0301 GMT, after marking a more than $60 increase in November – its second consecutive monthly gain.
US gold futures for February delivery gained 0.1 per cent to $2,059.30.
Data on Thursday showed US consumer spending increased moderately in October, while the annual rise in inflation was the smallest in over 2-1/2 years.
The dollar index dropped by 0.2 per cent, after clocking its weakest monthly performance in a year in November, despite a 0.6 per cent rise overnight.
A weaker dollar makes gold less expensive for other currency holders.
Yields on 10-year Treasury notes also dropped.
Cooling inflationary pressures, and an easing labour market make case for an end to the Fed’s interest rate hiking campaign and a possibility of rate cuts in the months ahead, a rhetoric that two Fed officials also flagged this week.
Traders have advanced their bets for a rate cut by the Fed from around 80 per cent chance in May to a one-in-two chance in March, according to CME’s FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.
Spot silver was steady at $25.24 per ounce. Platinum was down 0.3 per cent to $924.17. Palladium increased 0.6 per cent to $1,013.84 per ounce.
