BENGALURU- Gold prices eased on Friday as investors digested US inflation report that was largely in line with estimates, although expectations that the Federal Reserve will cut interest rates this year kept bullion on track for its fourth straight monthly gain.
Spot gold gave up earlier gains to trade down 0.7 percent at $2,326.90 per ounce. US gold futures settled 0.9 percent lower at $2,345.8.
However, bullion was up 1.8 percent for the month. On May 20, prices hit an all-time high of $2,449.89.
“Gold is down despite the friendly PCE report and softer consumer spending, which could suggest near-term exhaustion in what has been a remarkable rally in 2024,” said Tai Wong, a New York-based independent metals trader.
Data showed the Personal Consumption Expenditures (PCE) Price Index rose 0.3 percent in April, in line with forecasts by economists polled by Reuters. In the 12 months through March, PCE inflation gained 2.7 percent as expected.
“Multiple Fed governors have said that it will take a few months of softer inflation to convince them it’s safe to cut rates. A September rate move remains close to a coin-flip, though odds will increase slightly after today,” Wong said.
