Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Gold Eyes First Weekly Gain in Four on Cooling US Inflation

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Eyes First Weekly Gain in Four on Cooling US Inflation

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose on Friday and were on course for their first weekly gain in four, as US economic data indicated a softening of price pressures, fuelling optimism that a rate cut by the Federal Reserve might be forthcoming.
Spot gold was up 0.4% at $2,311.39 per ounce, as of 0654 GMT. Bullion has gained 0.5% so far for the week.
US gold futures rose 0.4% to $2,326.40, reported Reuters.
"Market will try to take cues from what type of comments are coming from Fed officials. But overall, we see that market is set for two interest rate cuts this year, because inflation numbers are softening and moving in a desirable direction for the Fed," said ANZ commodity strategist Soni Kumari.
"There could be sentiment-driven pullback in gold prices in the short-term. But that will be a buying opportunity for most of the investors who missed the rally initially."
Data on Thursday showed that US producer prices unexpectedly fell in May, another indication that inflation was subsiding, keeping hopes of a Fed rate cut in September alive.
The data followed a cooler-than-expected CPI report released just ahead of the Fed meeting on Wednesday, where the central bank pushed out the start of rate cuts to perhaps as late as December.
Traders are seeing a 67% probability of a rate cut in September, according to the CME FedWatch Tool, compared to 63% before the producer prices data.
Lower interest rates would reduce the opportunity cost of holding non-yielding bullion.
"The best recipe for gold would be continued weakness in inflation, then that recessionary appeal of gold will start to come through as a bit of an extension of expectations of potential rate cuts this year," said Kyle Rodda, a financial market analyst at Capital.com.
Spot silver rose 0.1% to $29.02 per ounce, platinum was up 1.2% at $957.75 and palladium gained 0.6% to $888.52. All three metals were headed for weekly losses.



Aswat Asharq Al-Awsat : Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices nudged higher on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a September rate cut, while investors awaited more US economic data for further monetary policy cues.

Spot gold rose 0.1% to $2,423.89 per ounce by 0140 GMT. On Monday, prices hit their highest level since May 20, when bullion scaled a record peak of $2,449.89.

US gold futures were flat at $2,429.90.

"Powell continued to lay the groundwork for upcoming policy easing. A rate cut in September is now fully priced in by markets, which may keep sentiments in gold prices well-supported in the lead-up," said IG market strategist Yeap Jun Ron, Reuters reported.

Powell said on Monday the three US inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

When interest rates decrease, the allure of non-yielding bullion typically increases.

Investors were awaiting US retail sales data due at 1230 GMT on Tuesday and comments from Fed governors Christopher Waller and Adriana Kugler later this week for further direction.

A subdued retail sales report may underpin gold prices on dovish Fed bets, while a break to a fresh high will mark a continuation of gold's broader upward trend, which may leave the $2,600 level on watch next, Yeap said.

Elsewhere, India's four-week platinum imports from mid-June eclipsed 2023's total as bullion dealers exploited a loophole by registering alloys containing around 90% gold as platinum to avoid higher duties, government and industry officials told Reuters.

Among other metals, spot silver fell 0.9% to $30.72 per ounce and platinum eased 0.4% to $991.40, while palladium rose 0.2% to $951.84.