The price of gold was little changed on Friday, but is on track for a third consecutive quarterly rise, as investors await US inflation data for further clues on the Federal Reserve’s stance on the matter. interest rate.
Spot gold was almost unchanged at $2,328.42 an ounce, as of 0907 GMT. Prices gained about 4% for the quarter.
U.S. gold futures rose 0.1% to $2,338.80.
“Gold has so far managed to hold its ground, with the current consolidation phase being so shallow that hedge funds that bought the rally in February and March have yet to be challenged,” said Ole Hansen, head of commodities strategy at Saxo Bank.
In May, bullion hit an all-time high as a cocktail of factors ranging from rate cut expectations to China’s stimulus measures to geopolitical tensions boosted demand.
“As long as the metal holds above $2,200, I don’t see a major risk of a long-term forced sell-off emerging. Upcoming data will be key, but overall I don’t see why gold couldn’t reach $2,500 before the end of the year, supported by multiple factors,” Hansen added.
US Personal Consumption Expenditure (PCE) figures, the Fed’s preferred measure of inflation, are due at 1230 GMT.
A soft run of PCE numbers is needed to keep hopes of Fed easing alive and provide further support for gold, City Index senior analyst Matt Simpson said.
Gold rose more than 1% in the previous session after data showed a slowdown in U.S. economic activity.
Meanwhile, Fed Governor Michelle Bowman has maintained her stance that she is still not ready to support a central bank rate cut with inflation pressures still elevated.
Spot silver rose 0.8% to $29.28, while platinum gained 1.8% to $1,005.20. Both metals are on track for quarterly gains.
Spot palladium rose 3.6% to $962.50.
