Gold prices rebound from 2-week low ahead of US inflation data

Gold alloys

Gold prices rallied today, May 27, reversing last week's losses in light of the uncertainty of US monetary policy prospects, with focus shifting to the release of inflation data in the Eurozone and the Federal Reserve's preferred inflation gauge — the core personal consumption expenditures price index.

Bullion for June delivery rose 0.39%, or $9.20, to $2,343.70 an ounce at 08:34 am Makkah time, after posting losses of 3.45% last week. Further, spot prices added 0.36%, or $8.46, to stand at $2,342.29 per ounce, after touching the lowest level since May 9 ($2,325.19/ounce) during Friday’s trading.

Silver futures for July delivery, likewise, jumped 1.59% to $30,985 per ounce, with platinum spot prices also soaring 1.45% to $1,043.04 an ounce.

Analysts expect annual consumer price inflation in Europe to accelerate to 2.5% in the preliminary reading for May, which is scheduled for release on Friday, up from 2.4% in April.

The core personal consumption expenditures price index, the Fed's preferred measure of inflation, is due on the same day, amid forecasts for advancing 0.2% in the forthcoming April reading, after increasing 0.3% the previous month.