Gold up ahead of Fed’s preferred inflation gauge

Gold bars

Gold prices rose on Friday as investors awaited the release of the Federal Reserve's preferred inflation gauge, which may provide further clues about the interest rate path.

Gold futures for August delivery rose by 0.65% to $2,368.70 per ounce at 10:02 am KSA time. Spot gold prices rose by 0.25% to $2,370.38 per ounce, although they are on track to record a loss of more than 1% for the week.

Silver futures for September delivery remained steady at $27.93 per ounce, as did platinum prices at $936.46 per ounce.

The US personal consumption expenditures (PCE) price index data, expected to be released later today, is anticipated to show a year-over-year slowdown to 2.5%.

According to Reuters, Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet, said, “With near-term support in sight at the $2,280 mark, we still believe gold can hit $2,680 by end of this year.”

He also pointed out that the US elections, the surrounding political uncertainty, and trade tensions between Washington and Beijing are other key factors that could lead to a significant price rally.