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 on, with the current consolidation phase 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, from rate cut expectations to Chinese stimulus and geopolitical tensions, boosted demand.
“As long as the metal holds above $2,200, I don’t see any major risk of a forced liquidation phase emerging in the long term. Upcoming data will be key, but overall I “I don’t see why gold can’t reach $2,500 before the end of the year, supported by multiple factors,” Hansen added.
U.S. personal consumption expenditure (PCE) figures, the Fed’s preferred measure of inflation, are due at 1230 GMT.
A run of soft PCE numbers is needed to keep alive hopes of Fed easing and further support gold, said City Index senior analyst Matt Simpson.
Gold rose more than 1% in the previous session after data showed a slowdown in U.S. economic activity.
Meanwhile, Fed Governor Michelle Bowman 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.
